Focus on short-duration, cash flowing investments with defensive risk-return profile attracts investors seeking principal protection with upside potential in the face of rising uncertainty
DENVER, CO – Nov. 14, 2018 – JCR Capital, an alternative investment manager focusing on middle market commercial real estate finance, today announced the final close on its fourth fund, JCR Capital Income Plus Fund IV, L.P. (“Fund IV”), at $306 million.
Fund IV easily surpassed its initial target of $130 million.
The strong interest in the fund is based largely on its defensive investment strategy in the midst of what many perceive to be a fully-valued market. Fund IV will primarily make participating preferred equity and structured joint venture equity investments in value-add, cash flowing properties with short duration investment periods. Fund IV will focus exclusively on middle market properties (properties currently valued at $50 million and less) in the multifamily, industrial and office sectors, as well as select retail.
“The success of this fund raise is a direct result of JCR’s track record of protecting principal and providing investors with attractive risk-adjusted returns through several market cycles,” said Jay Rollins, managing principal of JCR Capital. “In addition, the investment community respected our history of accurately reading the market, including calling the top of the market in 2007, and our ability to select the appropriate investment strategy for the times.”
Investors also appreciated that unlike many other funds, Fund IV does not employ fund-level leverage. This conservative approach dramatically reduces the investor risk profile.
“As we are deep into the current market cycle, there are increasing concerns that the market is due for a correction,” said Rollins. “Fund IV is designed to protect against this downside scenario with stress-tested underwriting, while providing an “upside hedge” in the event a market dislocation does not occur over the next three years.”
Based in Denver, JCR is one of the country’s leading alternative real estate investment managers. JCR has approximately $1.0 billion in assets under management through both its debt and equity investment platforms.
Perth Advisors was the placement agent for Fund IV.
About JCR Capital
JCR Capital is an alternative investment manager that provides capital solutions to middle market commercial real estate sponsors. Investing on behalf of insurance companies, public pension funds, endowments, foundations and family offices, JCR focuses on the under-served middle market. JCR was founded in 2006 and is managed by Jay Rollins and Maren Steinberg.
Nothing herein constitutes an offer to sell any security as Fund IV is closed to new commitments. Market commentary, quotes and forward-looking statements are opinions subject to change. All investments have risk of loss including principal. Fund IV employs a subscription credit facility and investment-level debt.