ElmTree Funds Raises $325 Million

ST. LOUIS—ElmTree Funds, which was launched in St. Louis in 2011, has just closed on ElmTree Net Lease Fund II, its sixth net lease private equity fund, after receiving commitments of $325 Million, exceeding its $300 million target. Institutional investors made most of the commitments to the latest fund. Jim Koman, managing director and founder of ElmTree, declined to name the investors but said the largest allocations came from retirement systems and hedge funds.

ElmTree typically invests in single tenant, investment-grade net lease real estate assets, sale leasebacks, and build-to suits with tenant lease terms of 10 to 15 years. Company officials say ElmTree Net Lease Fund II will eventually acquire a billion dollars of net lease assets and has already completed the acquisition of over $400 million in properties. About two-thirds of the Fund’s current properties are build-to-suit. Tenants in the fund’s properties include Cardinal Health, United Technologies, GE, Caterpillar, and Tyco, among others.