Machine Investment Group Closes Debut Fund at $312.7 million
NEW YORK / WASHINGTON DC (May 4, 2022)
Machine Investment Group (“Machine”), a real estate investment platform established in 2020, announced that it held a final close for the firm’s inaugural fund vehicle, Machine Real Estate Fund I. The fundraise includes primary commitments of $245.7 million and $67 million in co-investments at the time of the final close. Investors included public & private pension funds, international investment managers, foundations, family offices and limited private investors.
“We appreciate the strong support of our limited partners at this transformative time for our firm,” said Eric Rosenthal, Managing Partner and Co-Founder of Machine. “Launching a fund during a period of dislocation aligns well with our mandate to identify value-add and opportunistic investments across all commercial asset classes and capital stack positions. We believe we have assembled an attractive initial portfolio for our investors and continue to see tremendous opportunity within the domestic middle-market.”
Machine targets equity and debt opportunities, including property repositioning, the acquisition of non-performing loans, and broad special situations with a primary focus on the top 35 domestic MSAs.
As of the final close, the fund has deployed 67% of committed capital, including co-investment.
Select fund investments include a nine-acre office-to-residential redevelopment site in San Jose, CA; Rescue capital loan secured by two hotels in Los Angeles, CA; 470,000 SF industrial project in Jacksonville, FL; 370,000 SF industrial redevelopment in Nashville, TN; Preferred equity loan to a public hospitality REIT; 258-unit value-add multifamily portfolio in Kansas City, MO; and a 90,000 SF single-tenant office/R&D acquisition in Sunnyvale, CA.
Incubation Capital Partners served as exclusive placement agent for Machine Real Estate Fund I.
Kirkland & Ellis LLP served as fund counsel.
Prospect Avenue Partners served as strategic advisor.
About Machine Investment Group
Machine Investment Group is a real estate investment platform focused on opportunistic, distressed and special situations across the United States. Founded by former senior executives from Garrison Investment Group, Machine invests primarily in the middle market, where its reputation as a reliable counterparty, its solutions-oriented approach and extensive lender relationships distinguishes the firm from the competition. Machine’s strict risk discipline, institutional operating processes and well-developed sourcing network has been cycle-tested and is designed to deliver consistent, opportunistic returns while minimizing losses.
About Incubation Capital Partners
Incubation Capital Partners ("Incucap") is a capital advisory and principal investment firm that partners with middle-market, entrepreneurial investment managers to build and scale institutional real estate platforms. Over the past eleven years, Incucap has sourced transformational, institutional capital in a myriad of structures on behalf of forward-thinking investment managers across the U.S. and U.K.