December 9, 2020 – Forum Capital Advisors is pleased to announce the successful closing of the Forum Integrated Income Fund (“FIIF”), the firm’s first commercial real estate debt offering. The fund closes with $50 million in capital commitments, largely from family offices, RIAs and high net worth individuals.
The Fund’s objective is to invest across the commercial real estate (CRE) capital stack to deliver current income and capital appreciation over the long term. To achieve these objectives, FIIF starts with a capital-preservation focus and has a flexible mandate enabling it to act opportunistically during market dislocations like we experienced last March.
“Two of the primary reasons for launching the Fund a little over a year ago were our belief that we had clearly entered the latter innings of the real estate cycle, and our view that frothy asset prices meant investors were not being sufficiently compensated for taking equity risks,” said Portfolio Manager Pat Brophy. “That’s why we designed the Fund to be a conservative, all-weather vehicle that could strategically pick its spots in the capital stack, invest patiently, and be opportunistic if warranted."
“We certainly didn’t anticipate a global pandemic, but our flexible structure and unique access to both public and private markets left us very well positioned to capitalize on the volatility, distress and lack of liquidity that accompanied the market downturn in March and April. Our investment thesis has already played out on many of those early purchases. Looking forward, we expect more dislocations, especially in the private market, and increasingly rapid shifts in the commercial real estate (“CRE”) opportunity set; that should provide an attractive investment backdrop for the Fund.”
Fund Close Represents Successful Expansion of Forum’s Real Estate Offerings
FIIF is the first fund launched by Forum Capital Advisors (“FCA”), a boutique investment management firm focused on commercial real estate debt and an affiliate of Forum Investment Group (“FIG” or “Forum”), a private real estate investment firm that specializes in real estate acquisitions, development and debt investment opportunities.
FCA was launched to provide Forum investors with another avenue for accessing real estate-related income opportunities. This first fund closing is a validation of the need for alternative sources of income, stated Forum Investment Group Founder and CEO Darren Fisk.
“Looking forward we believe commercial real estate debt is an important solution to many of the problems facing investors today — low interest rates starving portfolios of necessary cash flow, complex private lending structures introducing unanticipated risk, and a general need for diversification. We are proud to continue finding new ways to address those issues,” Fisk said.
About Forum Capital Advisors
Headquartered in Denver, Colorado, Forum Capital Advisors, LLC, is an affiliate entity of Forum Investment Group, (forumre.com) a private real estate investment firm specializing in multifamily real estate acquisitions, ground-up development and debt investments across the capital stack and throughout market cycles. Forum Investment Group offers investment opportunities through its affiliate entities Forum Capital Advisors, LLC (real estate debt investments) and Forum Real Estate Group, LLC (real estate multifamily acquisitions and ground-up development). Forum Capital Advisors, LLC is a Registered Investment Advisor and manager of the firm’s private funds.
For more information, visit: www.forumcapadvisors.com