Investment manager closes its largest fund since its founding in 2001; capital to be deployed in value-add investments in multifamily communities

NASHVILLE, Tenn.–(BUSINESS WIRE)–Covenant Capital Group, LLC (“Covenant”), a leading real estate investment manager with an exclusive focus on value-add investments in apartment communities, announces it has closed on the largest fund in the firm’s 20-year history.

On June 30th, Covenant Apartment Fund X, L.P. closed with $600 million of committed capital. Covenant began raising Fund X in 2020 and significantly surpassed the fund’s target of $400 million. Fund X capital commitments exceeded those in Covenant’s prior fund, Covenant Apartment Fund IX, L.P by over 50%. Covenant closed Fund IX in 2018 with $395 million of committed capital.

“We are excited to close on our largest fund yet with Fund X,” said Govan D. White, Managing Partner, and co-founder of Covenant. “The fact that we were able to raise our largest fund during a global pandemic speaks to the confidence our limited partners have in Covenant’s ability to consistently outperform others in our field.”

Since 2001, Covenant has raised more than $2 billion of capital to invest in apartment communities, solidifying the firm as a national leader in value-add investments in the multifamily sector. Covenant’s latest fund received commitments from more than 300 limited partners, with more than 93% of the investors having committed to previous funds.

Fund X plans to invest more than $1.7 billion, including debt, into approximately 40 to 50 assets over the next 3 years. To date, Fund X has already closed on 13 transactions, with over $600 million in total capitalization. “Our value creation efforts have allowed us to acquire and reposition over 225 apartment communities since 2001 with an aggregate value of more than $4.1 billion,” said White.

About Covenant Capital Group

Covenant Capital Group, a real estate investment management company formed in 2001, focuses on revitalizing apartment communities into premier, institutional quality assets. Headquartered in Nashville, Tennessee, Covenant has over $1.1 Billion of assets under management and manages real estate investments in more than 26 markets throughout the United States. Covenant was founded by Rick Scarola and Govan White in 2001. Covenant is a signatory to the United Nations Principles of Responsible Investing.

Covenant is co-managed by partners Rick Scarola and Govan White. They have worked together for over two decades and the firm’s leadership team has operated through multiple economic cycles to refine its strategy in a multitude of conditions. Covenant’s clients are a diversified mix of public and private retirement systems, foundations, endowments, and private investors.