CARMEL, IN - Merchants Capital today announced large capital raises, including $506.7 million in fund investments closed across the firm’s multi-investor, proprietary and state credit offerings for the year ended Dec. 31, 2023. The firm raised an additional $365 million in tax credit equity in January 2024.
The firm’s capital raise, which has surpassed $1.4 billion since the platform launched in 2021, comprises $725 million in multi-investor offerings, $26 million in state credit syndications and $664 million in proprietary fund investments.
In December 2023, the firm closed Merchants Capital Tax Credit Equity Fund 16, LLC, a $160 million multi-investor fund with 12 bank investors, including three new investors. In January 2024, the firm closed Merchants Capital Tax Credit Equity Fund 14, L.P., its largest ever fund capital raise at $263 million with a large institutional investor.
“Successfully raising $1.4 billion in tax credit equity since launching our platform three years ago is a remarkable achievement—it sets Merchants Capital apart from other new entrants in the tax credit equity syndication space,” said Julie Sharp, Executive Vice President at Merchants Capital.
“Our success is a testament to our team, the support of our investor and developer partners and the innovative platform we have built across all business lines at Merchants Capital,” said Linda Hill, Executive Vice President at Merchants Capital.
The announcement of record-breaking results in the tax credit equity division follows Merchants Capital’s recognition by Affordable Housing Finance as the #2 largest lender for affordable housing in the United States.
“It has been extremely rewarding to build out an equity originations platform in a firm that offers industry-leading debt products and balance sheet solutions for affordable housing developers,” said Josh Reed, Executive Vice President of Acquisitions at Merchants Capital. “We are grateful to our developer and investor partners, who make our success possible.”
Merchants Capital’s asset management portfolio includes tax credit equity investments in more than 13,000 affordable homes in 23 states.
“Our remarkable production results reflect strongly on the capabilities and investments we have made in our asset, fund and risk management team of professionals who are steadfast in their dedication to our investor and developer partners,” said Chris Messmann, Executive Vice President of Syndications and Tax at Merchants Capital.
To learn more about Merchants Capital and its services, visit www.merchantscapital.com or find Merchants Capital on Facebook, X, LinkedIn and Instagram.
ABOUT MERCHANTS CAPITAL: With more than 30 years of success built on putting people first, Merchants Capital is a proven leader in financing for multifamily housing nationwide. Our licenses with Fannie Mae, Freddie Mac and HUD/FHA, in addition to our bank’s balance sheet products, allow us to offer custom solutions with agility and ease of execution, expanding access to housing in meaningful and impactful ways. Recognized as a top five affordable lender, Merchants Capital pairs our comprehensive debt offerings with in-house tax credit equity to provide a one-stop-shop for developers and owners. To learn more about Merchants Capital, visit www.merchantscapital.com. MEDIA CONTACT: Terra Hoskins, pr@merchantscapital.com, 317.843.6035
Forward-Looking Statements: This press release contains forward-looking statements which reflect the company’s current views with respect to, among other things, future events and financial performance. These statements are often, but not always, made through the use of words or phrases such as "may," "might," "should," "could," "predict," "potential," "believe," "expect," "continue," "will," "anticipate," "seek," "estimate," "intend," "plan," "projection," "goal," "target," "outlook," "aim," "would," "annualized" and "outlook," or the negative version of those words or other comparable words or phrases of a future or forward-looking nature. These forward-looking statements are not historical facts, and are based on current expectations, estimates and projections about the industry, management's beliefs and certain assumptions made by management, many of which, by their nature, are inherently uncertain and beyond our control, such as the potential impacts of the COVID-19 pandemic. Accordingly, the company cautions that any such forward-looking statements are not guarantees of future performance and are subject to risks, assumptions, estimates and uncertainties that are difficult to predict. Although the company believes that the expectations reflected in these forward-looking statements are reasonable as of the date made, actual results may prove to be materially different from the results expressed or implied by the forward-looking statements. A number of important factors could cause actual results to differ materially from those indicated in these forward-looking statements, including the impacts of the COVID-19 pandemic, such as the severity, magnitude, duration and businesses' and governments' responses thereto, on the company's operations and personnel, and on activity and demand across its businesses, and other factors identified in Merchant Bancorp’s "Risk Factors" or "Management's Discussion and Analysis of Financial Condition and Results of Operations" in its Annual Report on Form 10-K and other periodic filings with the Securities and Exchange Commission. Any forward-looking statements presented herein are made only as of the date of this press release, and the company does not undertake any obligation to update or revise any forward-looking statements to reflect changes in assumptions, the occurrence of unanticipated events, or otherwise.