American South Capital Partners has reached a significant milestone with the first close of its newest affordable housing investment vehicle, American South Real Estate Fund III, raising $60 million toward its $500 million target. The firm, a joint venture between SDS Capital Group and Vintage Realty Company, continues to accelerate its mission of expanding affordable and workforce housing across the Southern United States.
The new fund follows the momentum of ASREF II, which closed in early 2024 with $174 million in commitments, including its first pension capital investment through funds managed by GCM Grosvenor. All first close participants in ASREF III are returning investors from earlier funds, highlighting the strong performance and long-term trust in the platform.
GCM Grosvenor is also contributing capital on behalf of funds that represent several large public pension plans, with plans to increase its allocation as fundraising progresses.
ASCP focuses on supporting the development and preservation of affordable and workforce housing across 10 Southern states, including Alabama, Florida, Georgia, Louisiana, and Texas. Across its family of funds, the firm has committed $199 million to 29 projects, helping develop 7,632 housing units, with the majority reserved for families earning below 80 percent of the area median income.
With ASREF II nearly fully deployed, the launch of ASREF III positions the firm to continue funding a growing pipeline of projects addressing the national housing shortage. The firm notes that the United States faces a gap of seven million affordable housing units, a challenge that has intensified the need for both private investment and scalable solutions.
The firm’s leadership emphasized both the social and economic value in addressing the housing crisis, pointing to the clear role institutional capital can play in correcting historic supply imbalances while meeting expected risk-adjusted returns.
KEY QUOTES
“American South Capital Partners continues to deliver for our institutional clients while generating measurable social outcomes that closely align with their values.”
Peter Braffman, Managing Director, GCM Grosvenor
“The affordable housing crisis in the U.S., while a moral imperative for society – presents a compelling investment opportunity. The seven-million-unit shortage of affordable housing across the US should shock us all. It is devastating for society to have this many families under such substantial financial strain. Institutional capital has a vital role in correcting this historic imbalance, and it can do so while generating the level of risk-adjusted-returns these investors expect.”
Deborah La Franchi, Managing Partner at ASCP and CEO of SDS Capital Group
“We’re deeply grateful for the continued trust and enthusiasm from our investor community. Their support affirms our disciplined, outcome-oriented approach to real estate investing.”
David Alexander, Managing Partner at ASCP and CEO of Vintage Realty Company
