Impact Growth Capital Newsletter

 This week at IGC:
ACRE’s $1 Billion Bet on Housing Credit
Impact Firm Closes $660M Fund to Preserve Affordable Housing Across the US

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Data as of 7/23/2025

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Private Markets

Why ACRE’s $1 Billion Bet on Housing Credit Might Just Be Perfectly Timed

If you’ve been tracking the ongoing housing crunch in the U.S., you know we’re in a moment of profound supply-demand imbalance. From rising interest rates to a growing affordability gap, the cracks in the housing market have only widened. Now, ACRE—a real estate investment firm with deep roots in multifamily lending—is stepping into the gap with a $1 billion credit fund, and their timing couldn’t be more strategic.

Through the final close of its ACRE Credit Fund II, the firm raised a full $1 billion, backed by global demand from a wide swath of investors including pensions, insurance companies, endowments, family offices, and asset managers. This kind of response speaks volumes about how investors are viewing the housing market as a social concern and an actionable investment thesis. While the fund hasn’t publicly confirmed whether it will focus solely on multifamily assets, multifamily is clearly a core priority. That makes sense given ACRE’s longstanding role as a capital provider in the space.

But what’s really worth unpacking here is the context. Right now, traditional lenders, especially banks, have been pulling back. High interest rates and tighter capital requirements are making it harder for borrowers to find flexible financing. This creates a sizable opportunity for private lenders who are nimble, well-capitalized, and experienced. ACRE sees that window wide open. They’ve already executed $3 billion across four securitizations and have completed 195 debt and equity investments totaling $7 billion. Their lending approach includes borrower-friendly structures like match-term financing and non-recourse options, which help mitigate risk in today’s volatile interest rate environment.

The firm is also responding to what it calls "durable demand" in the multifamily sector. A recent report from Zillow estimated the U.S. is short nearly 4.7 million homes, and that the average buyer would now need a $17,000 raise just to afford the typical home. With over $4 billion in lending capacity and strong borrower relationships, ACRE believes it’s poised to move quickly and effectively in this dislocated market.

Impact Investing

Impact Firm Closes $660M Fund to Preserve Affordable Housing Across the US.

Jonathan Rose Companies just closed its sixth and largest affordable housing preservation fund—raising over $660 million to acquire, protect, and upgrade multifamily housing across U.S. cities. This brings the total raised in its fund series to more than $1.5 billion. The new fund will target high-demand markets like Boston, Chicago, Los Angeles, and Washington D.C., with the goal of not only preserving affordability but also enhancing energy efficiency, reducing emissions, and delivering healthier, opportunity-rich living environments.

What sets this fund apart is its holistic, impact-first approach. Beyond bricks and mortar, Fund VI will pursue aggressive sustainability goals, like cutting portfolio-wide energy use by 20%, while providing residents with on-site programs designed to promote economic mobility. Read the full article and learn more about the strategy behind Fund VI here.