EPC Nears $400M Target for Fifth Fund

Eagle Property Capital is actively raising for its fifth fund EPC Promecap Multifamily Partners V, which has a final capital raise target of $400 million from a mix of domestic and foreign investors. As the name of the fund suggests, EPC has teamed with Mexican-based Promecap for the fund, which will focus on value-add multifamily deals in predominantly Hispanic communities.

“EPC Promecap Multifamily Partners V, which launched in mid-2021, has a target raise of $400 million,” Gerardo Mahuad, managing principal at Eagle Property Capital Investments, tells GlobeSt.com. “So far, we’re nearly halfway there—about 40% of that amount has been raised from equity sources as we approach our first close in March of this year.”

The fund will follow a similar strategy as past funds, according to Mahuad. “Similar to prior EPC funds, Fund V will target income-producing, value-add properties in the Sunbelt, and the capital raised will allow us to deploy approximately $1.2 billion in acquisitions over the next few years,” he says. The firm has invested in markets throughout the Sunbelt region for more than a decade, and has produced above-targeted returns for investors. The firm’s fourth fundraised $108 million last year, and it has continued to see strong investor appetite for the strategy, particularly following the pandemic. EPC has been able to prove out the model, which has also helped to generate interest. “Our operational expertise within predominantly Hispanic communities all resonated deeply with our investors,” says Mahuad.

Propecap was an ideal partner for this most recent fund due to its extensive network of investors, which will help EPC scale the strategy. “When Promecap, a leading private equity firm based in Mexico City, approached us about partnering on Fund V, we were delighted. They are one of Mexico’s leading private equity firms, with about $3.3 billion of assets under management and strong global network of institutional and family office investors,” explains Mahuad.

As it continues its capital raise this year, EPC plans to deploy $230 million of equity in the acquisition of about 3,500 apartment units. “Currently, our pipeline includes properties in resilient Sunbelt markets in Texas and Florida where we already have strong presence and operational expertise—so Houston and Dallas-Fort Worth, for example,” says Mahuad. “We also recently entered the Orlando market with the acquisition of two vintage multifamily communities totaling 310 apartments.”