Todd Hitt's Kiddar Capital Launches Builders Path Fund to invest in US Housing
The fund invests in new housing projects in recession-resistant zip codes in targeted growth markets
FALLS CHURCH, VA / FEBRUARY 16, 2017—After the successful launch of its technology-focused Built World Fund earlier this month, Kiddar Capital — a private equity firm with $600 million under management — announces their second public fund: the Builders Path Fund, which will provide capital to quality home builders in recession-resistant, demand-driven markets.
The Hitt family's 80-year history of investing in real estate along with Kiddar's data-driven investment strategy provide the backbone for the Builders Path Fund. "Investing in U.S. housing is in our DNA. We love the dynamics of the industry, the value proposition, and the job creation multipliers that coincide with the $30 trillion residential housing market," says Todd Hitt, founder and CEO of Kiddar Capital.
The $25 million fund is currently set for a 10-year fund life and targets returns of 20% over the lifetime of the fund. The fund's urban infill focus reflects the shrinking supply of the current housing market and addresses many of the capital constraints facing builders across the country.
Since the housing market crash of 2007, lenders have been forced to tighten their policies, resulting in lower levels of financing. The gap between funding and execution is wider than it's ever been and new project starts are at recessionary levels. "This fund will fill that gap," says Hitt. "Our team's model for post-recession market investment is a unique opportunity for both builders and investors."
The fund's data-driven strategy exhibits Kiddar's dedication to de-risking investments and obsession with not risking principal. Kiddar's diligence process locates ideal markets for investment, determines the optimal project for each location, and identifies builders who produce the highest-quality product.
Kiddar continues to offer their signature online data access along with the ultimate deal alignment — what Todd Hitt calls "real private equity" — Kiddar contributes 10% of the total fund from their own capital, so the firm has skin in the game and is at risk alongside their partners.
About Kiddar Capital
Kiddar Capital, founded in 2007, is a private equity firm that originates, structures, and manages strategic equity investments across a variety of business disciplines. Core investments include all real estate sectors, technology and innovation. Kiddar Capital has more than $600 million under management. For more information, visit:kiddar.com or email: email@example.com.
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