Investment management firm Banner Oak Capital Partners has closed on two new vehicles, Banner Oak Operating Co. Fund and Banner Oak Investment Fund, which have a combined $800 million to invest. The two funds are “designed to provide programmatic equity capital to real estate operating platforms,” according to the company.
Banner Oak has a long track record of working with management teams to provide capital solutions at the asset and enterprise levels, Banner Oak CEO Patricia Gibson said in a prepared statement. “We seek to be a value-added partner, focused on long-term relationships …”.
Teacher Retirement System of Texas is the sole source of third-party capital for these new vehicles, Banner Oak President Geoff Osborn told Commercial Property Executive, adding that Banner Oak co-invests capital in each vehicle.
The Banner Oak Operating Co. Fund will act as a private equity vehicle to invest in platforms themselves, providing capital for growth of the enterprise and systematic investment in real estate assets. The Investment Fund will provide capital for selective, direct investments in assets operated by the platforms.
Banner Oak’s prior fund, Akard Street Holdings, placed more than $1 billion in equity capital in the industrial, multifamily, senior housing, office and retail sectors, totaling $3 billion in gross assets. Banner Oak was launched in 2016 from its predecessor firm, Hunt Realty Investments, a private investor in real estate since 1991.