Private real estate investment firm Forum Investment Group has raised $226m (£173m) on closing its first private credit strategy investment vehicle.

The investment vehicle specialising in multifamily private credit closed on September 30, 2024, exceeding its target raise by 2.2x.

The fund focuses on providing gap financing in the form of mezzanine debt, preferred equity, participating preferred equity, and joint-venture equity to qualified third-party sponsors, value-add repositioning, and acquisitions of multifamily properties in high-growth markets across the US.

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“I am proud of the team and this final close, which represents a significant milestone for the firm’s multifamily private credit strategy,” said Forum founder and chief executive Darren Fisk. “We are grateful to all of our investors for their trust in and support of Forum.”

Forum chief investment officer Jay Miller added: “We are pleased to have completed the raise of our first private credit strategy investment vehicle. I am delighted that we exceeded our target allowing us to deploy additional capital into the market. We believe this capital raising success underscores the growing demand for private, non-bank financing to multifamily developers and we look forward to continuing to do what we can to provide these kinds of creative, gap financing opportunities to qualified sponsors in the future.”

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Forum’s private credit investment team is led by co-portfolio managers Tom McCahill and Joe Chickey.

“Tom and I are proud of the proprietary and extensive network we have cultivated and believe it is because of our relationships with our various partners that we are able to directly source over 88 per cent of the private credit strategy’s investment portfolio,” said Chickey.

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