Tags: ari rastegar | income | real estate | fund

Ari Rastegar to Launch a New Income-Focused Real Estate Fund This Fall

Ari Rastegar to Launch a New Income-Focused Real Estate Fund This Fall

(Dollar Photo Club)

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Tuesday, 09 August 2016 01:13 PM Current | Bio | Archive

My good friend and fellow Dallasite Ari Rastegar is at it again. Per Bloomberg:

Rastegar Capital, a real estate private equity firm, is planning to gather as much as $500 million for its first major investment fund.

The firm will start fundraising by September, with the goal of raising $250 million for the fund, which will have a cap of around $500 million, firm founder and chief executive Ari Rastegar said in a July 28 interview.

The fundraising comes as the level of uncalled capital pledged to real estate funds by investors was expected to hit a record $238 billion by the end of the second quarter, up from $210 million in December 2015, according to a July report from data provider Preqin. Amid the growing pool of capital for investment, 40 percent of U.S.-focused real estate managers surveyed by Preqin in June said they had experienced more competition for assets in the past 12 months, while 45 percent said they had not seen a change in competition levels.

Rastegar Capital focuses on income-producing assets where the firm can add value, in tertiary and secondary markets. The Dallas, Texas-based firm, which was founded in 2015, raised a $25 million “micro fund” last year, the Rastegar Income Fund LP, Rastegar said. Its backers include high net worth investors and a public pension fund, he said.

The firm is experiencing demand for U.S. property investments from domestic and international investors, from markets including China, Korea and the U.K., Rastegar said.

Rastegar, who previously worked for World Class Capital Group and as a senior associate at King and Grove Hotels, has so far invested in states including Ohio, Colorado, Texas and Mississippi, in asset classes including office, hospitality, retail and self-storage facilities.

The firm charges a 1.2 percent management fee on its funds, with a higher-than-market 50 percent carried interest above an 8 percent hurdle, but does not charge other fees usually imposed by managers, according to Rastegar. The higher carry and lower traditional fees creates better alignment of interests between investors and the firm, Rastegar said.

I invest with Ari personally, as do most of my accredited investor clients, and I’m looking forward to watching this latest venture come to fruition. Best of luck, Ari.


 

Charles Lewis Sizemore, CFA, is chief investment officer of the investment firm Sizemore Capital Management and the author of the Sizemore Insights blog. As of this writing, he was long AAPL and MSFT. To read more of his work, CLICK HERE NOW.

 

 

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Rastegar Capital, a real estate private equity firm, is planning to gather as much as $500 million for its first major investment fund.
ari rastegar, income, real estate, fund
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2016-13-09
Tuesday, 09 August 2016 01:13 PM
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