American South Capital Partners announces $60m first close of third affordable housing fund
by Andrea Zander
Real Estate Fund Manager American South Capital Partners (ASCP), a joint venture between SDS Capital Group and Vintage Realty Co., has completed the first closing of its newest affordable housing investment vehicle, American South Real Estate Fund III (ASREF III), securing $60 million in initial capital commitments toward its $500 million target.
ASREF III builds on the strong momentum of its predecessor, ASREF II, which closed in February 2024 with $174 million in equity commitments, including the fund’s first pension capital investment through funds managed by GCM Grosvenor. Investor commitments in ASCP’s mission-driven platform, which focuses on the preservation and development of affordable and workforce housing throughout the Southeastern United States, continues to accelerate. All of the ASREF III first close commitments are from investors who previously backed ASCP’s earlier funds, underscoring the platform’s strong performance and credibility.
Notably, GCM Grosvenor is committing capital on behalf of funds where it counts several large public pension plans as investors. The firm intends to grow this allocation throughout the fundraise.
“American South Capital Partners continues to deliver for our institutional clients while generating measurable social outcomes that closely align with their values,” said Peter Braffman, managing director at GCM Grosvenor.
ASCP specializes in providing equity financing to owners and developers of affordable and workforce housing projects across 10 Southern states: Alabama, Arkansas, Florida, Georgia, Louisiana, Mississippi, North Carolina, South Carolina, Tennessee and Texas. Across its family of funds, ASCP has committed $199 million to 29 projects, supporting the development of 7,632 housing units, with 81 percent designated as affordable for families earning less than 80 percent of the area median income.
With ASREF II nearly fully invested, the timely close of ASREF III will allow ASCP to continue providing equity to its extensive pipeline of affordable housing projects across the Southeast.
“The affordable housing crisis in the U.S. presents both a moral imperative and a compelling investment opportunity,” said Deborah La Franchi, ASCP managing partner and CEO of SDS Capital Group. “The 7 million-unit shortage of affordable housing across the U.S. should shock us all. It is devastating for society to have this many families under such substantial financial strain. Institutional capital has a vital role in correcting this historic imbalance, and it can do so while generating the level of risk-adjusted-returns these investors expect.”
David Alexander, ASCP’s Managing Partner and CEO of Vintage Realty Company, added, “We’re deeply grateful for the continued trust and enthusiasm from our investor community. Their support affirms our disciplined, outcome-oriented approach to real estate investing.”
