Investment Strategy

Investment Strategy


Phoenix Capital is an SEC-registered Investment Advisor, and since its inception in 1996, has focused on building long-term relationships with Investors who share an open and aligned approach to real estate investing. Phoenix creates value for its clients through repeatedly accessing acquisition and development opportunities from best-in-class real estate operators – those with well-defined expertise in particular product types, strategies and geographic markets who co-invest side-by-side with our capital.

Through Phoenix Capital Real Estate Funds, the firm makes equity investments in real estate joint venture projects on behalf of its institutional, family office and high net worth investors. Since its founding in 1996, the firm has invested over $900 million of equity capital into over 200 real estate projects with total aggregate costs of approximately $5 billion.

Throughout its 20 year history, Phoenix Capital’s principals and executives have been the firm’s largest investor group, thereby investing along-side its clients and ensuring a substantial alignment of interests. The Phoenix senior management team of exceptionally experienced professionals has worked together for over 20 years – first as real estate developers; next as family office real estate investors; and now as well-established professional fund managers. It is this unique combination of knowing “both sides of the street” – developer/operator, and investor/manager – that makes Phoenix Capital the real estate manager of choice for its large, diverse and sophisticated group of high net worth individuals, family offices, wealth managers, and institutional clients.

In 2009, Phoenix initiated a private equity fund strategy focused primarily on multi-family development and acquisition assets nationwide. Since inception, the financial goal of these Funds was to deliver a mid-teen net IRR with a net equity multiple of 1.6x plus over a three to five year hold period. Funds 1-6 have invested in 61 projects in 34 submarkets, and current projections indicate the Funds are on track to meet or beat the pro forma return targets. The 2016 Fund, Phoenix Real Estate Fund VII, L.P., is projected to deliver similar results as prior funds by targeting 10-15 investments with diversification into 8-10 higher growth markets with an equal number of best-in-class operator/development partners.

A unique advantage to the Phoenix family of Funds is that the capital is deployed much quicker than competitive funds, typically over a 12-18 month period (versus other funds with investment periods as long as 3-5 years). In addition, by keeping the Fund size smaller ($200 million or less), Phoenix can remain highly selective in its screening process (typically reviewing several hundred projects each year and investing in only 10-15). Detailed asset and fund level reporting is provided to our investors on a quarterly basis. According to some of our clients working on Wall Street, the Phoenix client reporting system is touted as one of the best in the industry in terms of detail, clarity, and transparency.

Current Investment Focus >>