Brasa Capital has closed its debut investment fund oversubscribed at $120 million, exceeding its initial fundraising goal of $100 million. The fund will focus on middle market transactions in the Western US and Texas requiring $5 million to $25 million in equity.

“The response from potential investors was very positive from the outset as they quickly recognized that opportunities in the middle markets were being overlooked,” Eric Samek, founder of Brasa Capital, tells GlobeSt.com. “We also proved it was an excellent way for investors to penetrate the competitive Southern California real estate market, which is where we are focusing a lot of our attention.  As confident as we were in our investment thesis, with so much competition for institutional capital, surpassing one's fundraising goal is always a pleasant surprise.”

While the fundraising efforts exceeded initial expectations, it also attracted a broad range of investment capital. “We were excited to attract institutional capital from pension funds in our very first fund,” says Samek. “We are thankful that they have entrusted us with their investment and hope to continue to build these relationships. The potential capital from these types of institutions in future funds would give Brasa the opportunity to really scale down the line.”

Samek believes that there is strong opportunities in the middle markets, but it is a segment of commercial real estate currently overlooked. “A large percentage of dollars are going to mega funds for very large transactions,” he says. Middle market opportunities require a larger equity check than is typical of most private investors. We see a great opportunity to fill the gap where mega funds and high net-worth investors typically will not compete.

Formerly an executive at AEW Capital Management, Samek launched Brasa Capital in 2018 because he saw potential to focus on projects that need creative equity solutions. “Brasa was launched with an intentional focus on a diversity of viewpoints with a flat corporate structure,” says Samek. “The opportunities we are seeing are projects where flexibility, speed, and creativity get the deal done. Brasa's structure provides for a quick turnaround of terms and approvals to our sponsor and broker partners. We believe that regardless of the market cycle, we will continue to find great investment opportunities that hinge on Brasa's ability to react swiftly.”