Merchants Capital announced closing a $263 million low-income housing tax credit fund this month, marking its largest fund raise with an institutional investor.

Julie Sharp
Julie Sharp

The move comes on the heels of closing Merchants Capital Tax Credit Equity Fund 16, a $160 million multi-investor fund with 12 bank investors, in December.

For the year ending Dec. 31, the company reported raising $506.7 million in fund investments cross multi-investor, proprietary, and state credit offerings.

The recent funds have helped Merchants Capital surpass $1.4 billion in capital raised since kicking off the platform in 2021, according to company leaders.

Linda Hill
Linda Hill

“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, in a statement.

“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,” added Linda Hill, executive vice president.

Launchpad Apartments is among the affordable housing communities supported by Merchants Capital Tax Credit Equity Fund 16.
Launchpad Apartments is among the affordable housing communities supported by Merchants Capital Tax Credit Equity Fund 16.

One of the developments supported by Fund 16 is Launchpad Apartments, which will provide housing and services for youths experiencing homelessness in Colorado Springs, Colorado. Under development by Cohen-Esrey Development Group and The PLACE, the project will be the first property for transition-age youth in its primary market area. Merchants Capital is providing $10.9 million in federal low-income housing tax credit equity, and Merchants Bank is providing a $12.1 million construction bridge loan for the development.

The announcement of record-breaking results in the tax credit equity division follows Merchants Capital’s recognition by Affordable Housing Finance last year as the second largest lender for affordable housing in the United States.