A group of commercial real estate and technology veterans has raised $15 million in a Series A round and secured a sizeable equity subscription line to formally launch Palladius Capital Management, a vertically integrated real estate investment manager focused on pursuing multifamily, student housing, hospitality, and select thematic investment strategies.
Since its inception in July, the new real estate investment manager, based in Austin, Texas, has acquired approximately $500 million in real estate assets, including a 624-unit multifamily property in Texas. According to the firm, it will actively pursue additional investments across the Midwest and Southeast.
Investors include a portfolio company of Charlesbank Capital Partners, JE Dunn chairman Timothy Dunn, InterMedia Group of Companies CEO Robert Yallen, venture capital firm MiLA Capital co-founder Shaun Arora, and Parcast founder and Spotify executive Max Cutler.
Palladius is led by a diverse team of commercial real estate, finance, and tech veterans, including CEO Nitin Chexal and senior managing directors Manish Shah, Marko Velazquez, and Jaime Hinojosa. This group of leaders has built, managed, and led commercial real estate investment platforms over the course of their careers, which overlapped for nearly a decade. Together, they have acquired, managed, and operated more than $8 billion of assets with a track record of delivering strong risk-adjusted returns.
“From the way we are structured to the manner in which we raise capital and pursue investments, Palladius was purpose-built to be different from other real estate investment managers,” said Chexal. “Our Series A funding enabled us to put in place—right out of the gate—a best-in-class team and tech-enabled platform, allowing us to efficiently and prudently deploy capital into assets that we can operate with precision. We believe our early platform investments provide us with a sustainable competitive advantage, enhancing our ability to generate alpha on invested capital. We appreciate the support of our investors—many of which are long-term relationships.”
In addition, the firm announced the launch of Palladius Real Estate Fund I (PREF I) on real estate technology platform RealtyMogul. PREF I targets a $100 million capital raise and is focused on multifamily and student housing properties across the nation. Since October, it has acquired three value-add multifamily properties and one value-add student housing community totaling 1,178 units. By late March, when a 234-unit multifamily property under contract is slated to close, PERF I’s portfolio will be comprised of five assets with a total capitalization of $285 million. According to the firm, its target internal rate of return is 17.5% over a four- to six-year hold period.
“In forming Palladius, our plan was always to create and scale an enterprise that is capable of leveling the playing field to create value for both institutions and individuals,” added Chexal. “Investments in private equity funds like ours had traditionally been reserved for institutions. However, in partnering with an industry-leading real estate technology platform like RealtyMogul, we can provide accredited investors access to our fund, offering them the chance to participate in the potential upside that comes with passively investing in a professionally
