Machine Investment Group closes second investment fund at $350 million hard cap

New York, NY/Washington, DC Machine Investment Group, LP (Machine) acknowledged the final close of Machine Real Estate Fund II (Fund II), the firm’s second flagship investment vehicle. Fund II reached its $350 million hard cap in primary commitments and has raised an additional $120 million in co-investments to date.

Fund II received support from a diverse group of new and returning institutional investors, including public and private pension funds, endowments, foundations, family offices and private investors. Fund II exceeded Machine’s debut fund, Machine Real Estate Fund I, which closed in 2022 with $246 million in primary commitments and $208 million in co-investments.

“We are humbled by the support of our investment partners, including both returning Fund I investors and a number of new institutional relationships, which allowed us to reach our hard cap for Fund II,” said Eric Rosenthal, co-founder and managing partner of Machine Investment Group. “Reaching our hard cap in what continues to be a challenging fundraising environment, particularly for middle market managers pursuing a diversified strategy, is a milestone we do not take for granted. We continue to see compelling opportunities across the real estate market, and we believe our flexible, disciplined approach positions the firm well to pursue them.”

Machine invests across all major property sectors, primarily in the middle market, and targets value-add, opportunistic, distressed and special situations across the capital structure. The firm’s geographic focus includes the top 30 U.S. markets and shadow primary markets.

Representative Fund II investments include a special situations powered land investment in Pennsylvania, a distressed 539-unit residential property in downtown San Jose, a 229-unit senior housing property on Long Island acquired out of a distressed situation, a recently developed 1.3 million s/f industrial park in Phoenix, Arizona, and a strategic capital investment in a publicly traded company being repositioned as a powered land and data center development platform.

Incubation Capital Partners served as exclusive placement agent for Machine Real Estate Fund II.

Kirkland & Ellis LLP served as fund counsel.

Prospect Avenue Partners served as a strategic advisor to Machine Investment Group.