RBC Capital Markets’ Tax Credit Equity Group has completed its largest multi-investor low-income housing tax credit (LIHTC) fund to date.
National Fund 14 closed with $249.3 million in investments from six banks and financial services firms and five insurance companies. RBC said nine existing investors and two new investors participated in the offering.
The tax credit syndicator initially expected the fund to be about $175 million but expanded it because of strong investor demand.
“One of the challenges was how big to make the fund,” said Russell Ginise, managing director of tax credit investments. “We felt this was the right size in terms of the right product mix, to be able to manage the products within the fund, and to deliver a timely closing.”
The fund will help finance 35 LIHTC communities and will result in 2,429 homes in 17 states, according to RBC.