- East Chop Capital announced that it has raised $9 million for its real estate fund. These are the details.
East Chop Capital, a private equity firm with $20 million in assets under management and a diverse base of 90% BIPOC, 10% White, and 17% women investors, announced it has raised $9 million for its real estate fund focused on the $112 billion global vacation rental market. This is the company’s second fund, capitalizing on the intersection of real estate, the rebound in travel, and the future of hybrid work. The capital raised so far is more than double the size of the first fund with investor commitments received in 85% less time.
East Chop Capital’s portfolio of luxury vacation rental homes is marketed to travelers under the Getaway Society brand and is spread across the U.S., including Martha’s Vineyard, Hilton Head, Orlando, Gatlinburg, Virginia Beach, Broken Bow (Oklahoma), Banner Elk (North Carolina), and Port Aransas (Texas). And the firm’s first fund had two triple-digit ROI exits in 2021, 328% and 217% returns respectively, returned nearly $2 million to its investors, and is on track to deliver 20% annual returns, net of fees.
With a different approach to private equity, the founders are committed to providing the best combination of financial, educational, and social returns. And East Chop Capital was created to reduce the wealth gap among diverse communities and build generational wealth.
East Chop Capital hosts investor retreats, invites its investors to participate in other PE and VC investment opportunities, and helps investors analyze their own deals and businesses. And with a nationwide focus on environmental, social, and governance (ESG), as well as other impact investing initiatives, East Chop Capital is well-positioned to address economic disparities and the lack of access to capital in America for individuals, entrepreneurs, and minority business owners.
KEY QUOTES:
“The trend we’re most optimistic about is the future of work, in which hybrid is the new normal for people who work from their laptops. People are living, working, and traveling with flexibility that they’ve never had before. With this flexibility, they’re choosing to be near lakes, beaches, mountains, and entertainment destinations. They are looking for amazing homes in which to stay with their family and friends, and we can’t wait to host them.”
— Carrington M. Carter, Co-founder and General Partner
“We’re not new to this game. We’ve been owners, investors, and operators in this industry for the past eight years. Initially it was mostly self-funded, but since launching East Chop Capital in 2018 we’re truly excited to scale even further. Our strong base of individual accredited investors got us to $9 million and our first close. We remain focused on our target raise of $50 million.”
— Calvin L. Butts, Jr., Co-founder and General Partner
