Brookfield, Wis. (May 2, 2022) – MLG Capital today announced it has opened to investors its MLG Private Fund VI, which is the sixth in the firm’s series of private real estate investment funds. Fund VI will be MLG’s largest fund to date, with an equity raise goal of $400 million.
The launch of Fund VI comes one month after the close of MLG Private Fund V, which set a record as the firm’s largest fund and fastest equity raise to date – capping off at $350 million and finishing 15 months ahead of schedule.
“Our unique sourcing strategy for investment opportunities in a diversified fund structure has led to superior performance within the alternative private real estate space,” said Tim Wallen, Principal and CEO of MLG Capital. “We also have a major focus on creating significant income tax benefits and producing strong after-tax rates of return for our investors. We take great pride in the continued interest and trust from our investors, and we are excited about the opportunity to find smart real estate deals across the country for Fund VI.”
Private Fund VI continues the firm’s focus on geographic, asset class and asset type diversification for investors. It targets 25-30+ investments located in markets and locations where the company can grow the operating income of the property. The firm concentrates on investing in ‘smart deals’ that can produce believable and achievable results for the investor base, rather than setting a specific allocation to any particular asset class or geographic location. The fund will also continue to offer an option to invest with pre- or post-tax dollars with a focus on providing tax-efficient income to investors via cash-on-cash distributions and appreciation over time.
“As we celebrate our 35th anniversary this year, we are proud of our ongoing ability to consistently execute amid changing economies and markets,” said Wallen. “We have an incredible bench of talented employees at MLG. Operating in an environment where our strategies will continue to evolve, we believe the outlook for private equity real estate investing remains strong and we look forward to continuing to produce solid results for our investors.”
MLG also provides the charity-minded investor an opportunity to participate in the Making A Difference (MAD) Initiative. Launched in October 2021, the MAD Initiative allows investors to invest in MLG Private Funds, while donating a percentage of the returns to one of six deserving charitable organizations. To date, over $7.5 million has been allocated to the MAD Initiative, which is anticipated to generate $3.5 million in donations to the beneficiary organizations over the next 7-10 years. MLG has committed up to 10% of the total capital raised within Private Fund VI to the MAD Initiative. Combined with investor contribution commitments and MLG’s donation of 100% of its profit share, the program has the potential to yield millions of dollars for philanthropic interests.
“Part of MLG’s overall mission is ‘Making a Difference, While Making a Living’ and the MAD Initiative is anchored in that desire,” said Wallen. “We were pleased with the interest in the MAD Initiative through Private Fund V and are proud to expand the program with our newest fund.”
MLG has been acquiring assets since 1987. The first in the series of diversified funds launched in 2012, providing investors an opportunity to participate in portfolios of assets versus individual deals. The company has historically acquired over ±35 million square feet in total commercial property including over 30,000 multifamily units. Under its current growth strategy, MLG Capital aims to open a new fund offering every two years.
In addition to its fund milestones, MLG has also made significant acquisitions in the first quarter of 2022 amongst its various strategies, adding more than $283 million of assets comprised of 1.7 million square feet of property, inclusive of over 1,800 apartment units. The firm closed eight deals in Q1, including attractive investment properties in Oklahoma, Texas, North Carolina, Wisconsin and Minnesota.
