Atlantic Equity Partners, a New York City-based real estate private equity firm that invests in value-add hotels, has launched its Fund II to deploy capital to acquire and sustainably redevelop hospitality real estate with a double-bottom-line approach.
The new fund will target a fundraise of $150 million-plus from limited partners globally, with $25 million in capital already committed. Atlantic Equity Partners said it planned to “source exceptional properties in highly desirable markets under unique circumstances, acquiring them at an attractive discount and unlocking immediate upside through repositioning. Then, the firm will upgrade and decarbonize the properties to capitalize on growing consumer demand for engaging with businesses that have sustainable business practices.”
Each of the assets in Fund II will have a required set of metrics to reduce environmental impact through systems and retrofitting improvements, along with a strict set of durable and verifiable impact and efficiency guidelines around facilities operations, the company added.
“The launch of Fund II is a proud moment that builds on the momentum of our first fund, and it marks a major milestone for our larger impact vision to decarbonize the built environment in a range of assets far wider than hospitality alone,” said Jonathan Hoenig, managing partner and CEO of Atlantic Equity Partners. “The climate crisis requires an urgent response from investors, and addressing carbon in all types of man-made structures and settings will be essential to move the needle on climate goals that protect people and planet. These dynamics offer investors a unique opportunity to achieve both attractive returns and meaningful, positive impact.”