South Street Partners expects up to $2.25bn of unlevered buying power with inaugural fund close

Jul 28, 2022 | News

South Street Partners, a private equity real estate investment firm, has announced the final close of SSP GP Fund I. The firm’s inaugural discretionary commingled fund raised over $225m, significantly exceeding an original target of $100m.

The Fund was formed to continue South Street’s established track record of executing on opportunistic, value added and special situation investment opportunities in real estate assets located in the Southeastern United States as well as select U.S. and international markets.

The Fund’s GP structure enables South Street to scale its successful 13-year strategy of partnering with institutional investment firms on large cap transactions as well as to pursue small and mid-cap deals utilizing the Fund’s balance sheet. In addition, the firm expects to generate co-investment opportunities for its limited partners. The Fund could provide South Street with as much as $2.25 billion of unlevered buying power via these partnerships and co-investment vehicles.

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“As a former fund-less sponsor raising capital on a deal-by-deal basis, reaching the closing of our inaugural U.S. discretionary commingled fund is a major achievement,” said Chris Randolph, Partner. “Raising this fund through the pandemic certainly created challenges but we are honored by the outsized investor demand the fund received, which we believe is not only related to compelling opportunities that we are seeing but also the reputation and track record we’ve built over the past 13 years.”

Todd Whitenack, Co-Managing Partner of BBR Partners, whose firm’s clients anchored the Fund, stated, “Our firm was delighted to be part of this raise and we believe the strong interest from our clients is related to South Street’s track record, unique value proposition as well as the relevance of the strategy in the post Covid world.”

Since its founding in 2009, South Street has established itself as one of the country’s preeminent private residential club and resort investors. The firm has executed on some of the industry’s most recognizable trades over the last decade, including North Beach Towers, Kiawah Partners, Doonbeg, Christophe Harbour, The Cliffs Communities, The Residences at Salamander and Palmetto Bluff.

Source: PR Newswire

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