Machine Investment Group Closes $350M Real Estate Fund

**Fundraising Milestones** Machine Investment Group, LP announced the final close of its second flagship investment vehicle, Machine Real Estate Fund II (Fund II). The fund reached its $350 million hard cap for primary commitments and has additionally secured $120 million in co-investments. This marks a significant achievement, especially within a difficult fundraising environment for middle-market managers.

**Investor Support** Fund II attracted a mix of public and private pension funds, endowments, foundations, family offices, and individual investors. The performance of Fund II exceeded that of Machine's first fund, which closed in 2022 with $246 million in primary commitments and $208 million in co-investments.

**Investment Strategy** Machine Investment Group focuses on opportunistic, distressed, and special situations in real estate across the United States, primarily targeting middle-market opportunities. The firm's strategy involves value-add approaches, opportunistic plays, and special situations across the capital structure, with a geographic focus on top U.S. markets and shadow primary markets.

**Representative Investments** Notable investments from Fund II include a land investment in Pennsylvania, a distressed residential property in San Jose, a senior housing property acquisition on Long Island, an industrial park development in Phoenix, and a strategic capital investment in a publicly traded company being repositioned for powered land and data center development.

**Advisors** Incubation Capital Partners acted as the exclusive placement agent for Fund II, while Kirkland & Ellis LLP served as fund counsel. Prospect Avenue Partners provided strategic advisory services.