Home Alts News HPI’s Second Fund Goes Full Cycle, Nets Investors Nearly 15 Percent Return

HPI’s Second Fund Goes Full Cycle, Nets Investors Nearly 15 Percent Return


Hamilton Point Investments LLC, a sponsor of real estate private equity investment funds, announced that HPI Apartment Opportunity Fund II LLC, the firm’s second real estate private equity fund, has gone full cycle.

“We are pleased with the fund’s performance,” said HPI co-founder and managing principal, Matt Sharp. “We buy post-2000 construction apartment properties with strong in-place cash flow for below replacement cost in growing secondary markets, and then complete modest property and unit interior upgrades to boost rents. We feel this provides a reasonably safe risk and reward investment profile.”

Between, 2012 and 2013, the Reg D fund acquired six properties for $54.5 million, which they sold in 2015 and 2016 for $77.9 million. The fund had an 8 percent annual distribution since inception, and an average equity multiple to investors of 1.57x their original investment. The fund had an average net internal rate of return to investors of 14.64 percent over the fund’s 4.5-year life.

“HPI’s first fund went full-cycle in 2014, yielding investors a 14.5 percent average IRR, also over a 4.5-year hold period,” said Todd Williams, senior vice president of sales and marketing. “We are thrilled to come in with similar returns on this one.”

Hamilton Point Investments LLC acquires, owns, and manages multifamily apartment properties through a series of real estate private equity funds. The real estate private equity firm, based in Old Lyme, Connecticut with an asset management office in Atlanta, has acquired more than $550 million of multifamily apartment properties totaling 7,500+ apartment units since 2009.

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