BKM Capital Partners Closes Second Institutional Fund with $382 Million in Equity Commitments; More
ORANGE COUNTY, CA – BKM Capital Partners, an institutional fund manager with a niche focus on value-add, light multi-tenant industrial investments, has announced the final close of its second institutional fund, BKM Industrial Value Fund II, L.P., with $382 million in equity commitments.
In addition to $289.4 million of equity commitments to the fund and parallel vehicles, BKM has invested a
further $54.1 million of Fund II LP co-investment capital and has up to an additional $38 million of committed non-discretionary LP co-investment capital to deploy into this strategy. Together, this equates to more than $1 billion in buying power.
Building on the success of the firm’s debut fund, which garnered $130 million in commitments (consisting of $105 million in fund commitments and $25 million in deployed co-investment capital) and is already fully deployed, BKM’s Fund II will invest in undervalued light multi-tenant industrial assets in strong growth markets throughout the Western U.S.
We have made significant investments since founding BKM to build out an operating platform with both asset management and property management businesses.
"As a testament to our platform and to us as fiduciaries, we have evolved from a first-time fund manager with two institutional investors to our second fund and now having more than 20 institutional investors.”
BKM’s Fund II garnered investments from a mix of institutional investment sources, including U.S. endowments and pensions funds, family offices, and insurance companies.
The fund, which had a first close in December 2017, is already being deployed into large business park portfolios throughout the Western U.S., including major acquisitions in California and Arizona, among others.
“BKM’s ability to more than double our fund investments in less than 24 months speaks to the depth of our expertise in this product type,” says Brian Malliet, Co-Founder and CEO of BKM Capital Partners.
“We recognized the opportunity in light multi-tenant industrial early on and understood that this very specific property type was poised to grow faster than other industrial product.
"Today, fueled by healthy demand and tight supply, light multi-tenant industrial is on track to be one of the best-performing commercial real estate segments in 2019.”