AUSTIN—Austin-based The PPA Group has formed a private equity company called Casoro Capital, the entities are announcing today.

Helming the fund is William J. Papp, managing director, who is aiming to raise $50 million; the fund will focus on the Texas multifamily market, particularly Dallas, Austin, San Antonio and Houston.

“We are very, very excited about forming Casoro Capital,” Papp told GlobeSt.com last week. “It made sense to roll out our own captive private equity real estate fund.”

The fund targets high-net worth, family offices and institutions, says Papp, and will specifically invest in class C and B properties that have opportunistic value, as well as “core-plus A properties in which we can have the opportunity to make some minor [changes].”

Papp comes to Casoro with over 20 years of experience in global equity capital markets and public funds at Beachhead Capital Management, Mizuho Securities USA, Pacific Crest Securities, Prudential Equity Group and Lehman Brothers. He is currently a member and was vice chairman of the board and chairman of the investment committee for the Massachusetts Educational Financing Authority (MEFA) – 529 Plan ($4 billion) Age Based Portfolios. He was reappointed by Gov. Deval Patrick in 2011 and appointed by Gov. Mitt Romney in 2004.

As for how the fund will stand out, Casoro's principal and The PPA Group's president and CEO Monte K. Lee-Wen says it's all about the company's foundation.

“Being born out of an operations company will set us apart,” says Lee-Wen. “Because we are vertically integrated, we will be able to financially underwrite investment opportunities more thoroughly.”