Fund seeks growth by addressing continued demand for real estate development investment

May 1, 2024

Edmonton, Alberta — The second fund of KV Capital’s Real Estate Equity Partners division is now open for investment.

“Our goal is to raise $50 million,” says Darin Rayburn, president of Real Estate Equity Partners. “Our initial fund proved the viability of this program. Fund II will continue that trajectory—and continue to literally break new ground alongside our development partners.”

KV’s Real Estate Equity Partners program invests in projects led by experienced developers across Canada. It targets mid-size projects that are historically difficult for traditional capital to address.

“Our strategy is grounded in our deep understanding and extensive experience within the Canadian real estate sector,” explains Rayburn. “We know the market players, the projects, and are continuously monitoring the trends affecting the industry.  This insight enables us to confidently identify partners and carry out rigorous due diligence.”

Fund II will target “build and sell” projects with development horizons of two to five years and which are seeking an equity partnership investment from the Fund of two to ten million dollars.

“Fund II, just like Fund I, is asset-class agnostic,” says Rayburn. “We will invest in residential, industrial, or commercial projects that fit the mandate.”

Fund II’s launch closely follows the investment commitment completion of Fund I.

“The pace of capital commitment for Fund I was considerably faster than we expected,” says Rayburn. “There is a growing demand in the market for this kind of partnership, both among developers and investors. We are very proud of the relationships we established through Fund I and look forward to strengthening these and building new ones with Fund II.”  

Fund II targets an annual rate of return of 12 to 14 percent and will return capital plus any profits to investors within five to seven years.

KV’s Real Estate Equity Partners team is actively seeking fund investors and real estate projects in need of equity. Developers and investors both are welcome to contact the team.

About KV Capital

Founded in 2006 and based in Edmonton, Alberta, KV Capital is a Canadian, alternative investment fund manager with approximately $500 million in committed assets under management. KV Capital’s funds are split into a diverse range of asset classes including private operating businesses, real estate, and mortgages. KV Capital has been on the Profit 500 ranking of Canada’s fastest-growing companies for six consecutive years and has funded over $1.5 billion in investments across several different asset classes.