Forum Investment Group: The Team Behind the Dream
Forum Investment Group, a private real estate investment management firm, is about to make a splash in the market with its latest endeavor – launching a new private credit multifamily fund. But what sets them apart? Founded over a decade ago, Forum has built a reputation for its deep expertise and commitment to the multifamily sector. Their journey began with developing properties and evolved into strategic acquisitions and innovative financing solutions. They have a keen eye for spotting opportunities in high-growth markets across the United States, making them a trusted name among real estate investors and developers.
Stepping into the World of Multifamily Private Credit
Multifamily private credit is more than just a buzzword; it’s a sophisticated investment strategy tailored for specific needs of multifamily developers. Imagine needing extra cash to complete that crucial project or secure a lucrative deal without traditional bank loans. That’s where multifamily private credit comes in—to provide gap financing solutions like mezzanine debt, preferred equity, participating preferred equity, and joint-venture equity. These instruments help bridge the financial gap between the developer's resources and the costs associated with ambitious projects.
The Role of Private Credit in Real Estate
Private credit in real estate functions like a magic potion that can unlock hidden potential in projects. Unlike traditional banks which offer standardized loans with strict terms, private credit offers adaptive financing solutions customized for each client's unique situation. It helps developers access funds they might not find elsewhere, ensuring their projects don’t stall due to lack of capital. This flexibility makes private credit a beloved option for those in need of creative financing solutions.
Leadership at Forum: The Power Behind Success
At the helm of Forum is Darren Fisk, their Founder & Chief Executive Officer who couldn’t be prouder of how far they’ve come. "This final close represents a significant milestone for our multifamily private credit strategy," he remarked during an exclusive interview. His team, led by seasoned professionals like Tom McCahill and Joe Chickey, brings over 50 years of combined experience in the field. Their extensive network and community-sourced approach have allowed them to directly source over 88% of their investments off-market—a testament to their strong relationships with various partners.
Direct Sourcing: The Edge They Bring
Direct sourcing is what sets Forum apart from others in the industry. Imagine having direct communication with the best sources available without going through intermediaries or brokers. This not only ensures lower costs but also provides more control over sourcing their investments. Their ability to connect directly with sponsors, banks, or capital partners has been instrumental in securing top-tier opportunities that others might miss out on.
Exceeding Targets and Defying Expectations
When Forum announced its plan to raise capital for its multifamily private credit strategy, many thought it ambitious but feasible given their track record. However, exceeding their target raise by 2.2 times? That’s nothing short of remarkable This success wasn’t just about numbers; it underscored growing demand for private financing solutions within the real estate sector.
A Glimpse into Their First Successful Investment Vehicle
Forum's first private credit strategy investment vehicle closed successfully on September 30, 2024, far exceeding initial projections. This vehicle focuses on lending gap financing to qualified third-party sponsors who are either developing properties from scratch or repositioning existing ones to maximize their value.
Gap Financing Solutions
Mezzanine Debt: Short-term loans used for short-term projects or financing needs.
Preferred Equity: A hybrid investment between debt and equity providing priority returns over shareholders.
Participating Preferred Equity: Combines elements of both preferred equity and common stock but offers return of capital before common shareholder profit distribution.
Joint-Venture Equity: Investments made in partnership with other stakeholders such as co-developers or co-investors.
High-Growth Markets Across America
Forum isn’t afraid to venture where others fear to tread. They’ve identified high-growth markets across America where opportunities abound waiting to be grasped. From bustling metropolises like New York or Los Angeles to up-and-coming cities like Denver or Austin, these regions offer fertile ground for real estate investments yielding significant returns over time.
“High-Growth” Markets
New York - High
Los Angeles - High
Denver - Moderate
Austin - Moderate
Sponsors Trust Because They Deliver Results With Integrity
Jay Miller, Chief Investment Officer at Forum commented: "We are delighted that we exceeded our target allowing us to deploy additional capital into the market." He added: "This capital raising success underscores the growing demand for private non-bank financing to multifamily developers." For sponsors like them who trust their way too, it's reassuring knowing they'll always uphold integrity while delivering results because in today’s complex world anything less would mean falling behind others who keep pace.
A Team Built On Trust And Experience
Team members Tom McCahill & Joe Chickey pride themselves upon cultivating proprietary network directly sourcing over Eighty-eight percentof their portfolio excluding all intermediary presentations .Relationships built over years prove essential securing prime opportunities others might overlook .
Innovative Financing Opportunities Ahead
With everything considered so far ,one thing becomes clear–in ever-changing world needing constant evolution here comes innovators breaking barriers one after another !Forum’s journey symbolizes hope new era emergence tailored towards those seeking unfathomable possibilities redefining conventional norms !
FAQs
1. What is multifamily private credit?
Multifamily private credit is an investment strategy that provides specialized financing solutions, such as mezzanine debt, preferred equity, and participating preferred equity, tailored for multifamily property developments and repositionings.
2. How does Forum’s new private credit multifamily fund differ from traditional bank loans?
Forum’s private credit fund offers adaptive, customized financing solutions that bridge the financial gap for multifamily developers. Unlike traditional bank loans which provide standardized terms, private credit is more flexible and yields better results for specific projects.
3. What sets Forum Investment Group apart in the market?
Their extensive network and community-sourced approach allow them to directly source over 88% of their investments off-market through strong relationships with various partners such as sponsors, banks, or capital partners.
4. Why did Forum exceed their target raise for their multifamily private credit strategy?
Exceeding their target raise underscores growing demand for private non-bank financing towards multifamily developers. The capital raised enables Forum to deploy additional resources into the market more effectively.
5. Who leads Forum’s private credit investment team?
The team is led by seasoned professionals Tom McCahill and Joe Chickey, who together bring over 50 years of combined experience in the field and have cultivated an extensive proprietary network crucial for sourcing prime investment opportunities.
Data Points
Closed Investment Vehicle's Value:
$226m, exceeding initial target raise by 2.2 times.
Portfolio Direct Sourcing Efficiency:
Over 88% of investments sourced directly without intermediaries or brokers.
Years of Combined Experience Among Lead Team Members:
Over 50 years combined experience in multifamily private credit.
Number of States Where Assets Are Present:
Over 20 states across America.
Year of Establishing Investment Management Platform:
2018.
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