Machine Investment Group has closed Machine Real Estate Fund II at its $350 million hard cap and raised an additional $120 million of co-investment capital to date, bringing commitments associated with the investment vehicle to approximately $470 million.
The fund represents Machine’s second flagship real estate vehicle.
Fund II received commitments from new and returning institutional investors including public and private pension funds, endowments, foundations, family offices and private investors.
The vehicle exceeds Machine Real Estate Fund I, which closed in 2022 with $246 million in primary commitments and $208 million in co-investments.
Machine focuses on middle-market real estate investments spanning value-add, opportunistic, distressed and special situations across the capital structure.
Its geographic focus includes the top 30 U.S. markets and so-called shadow primary markets.
Fund II investments include powered land in Pennsylvania, a distressed 539-unit residential property in downtown San Jose, a 229-unit senior housing property on Long Island and a recently developed 1.3 million-square-foot industrial park in Phoenix.
The portfolio also includes an investment in a publicly traded company being repositioned around powered land and data center development.
Incubation Capital Partners served as exclusive placement agent, Kirkland & Ellis served as fund counsel and Prospect Avenue Partners acted as strategic adviser.
Machine’s senior team has experience managing investment vehicles totaling approximately $2.4 billion.
KEY QUOTE:
“Reaching our hard cap in what continues to be a challenging fundraising environment, particularly for middle market managers pursuing a diversified strategy, is a milestone we do not take for granted.”
Eric Rosenthal, Co-Founder And Managing Partner Of Machine Investment Group
