Waterloo Associates Fund III, LP

Asset type: Residential · Location: Austin, Texas

Waterloo Associates is a real estate PE firm (based in Austin, TX) that focuses on ALL commercial real estate (CRE) verticals with a current focus on our Fund III offering here. This Fund III is our 3rd closed end fund targeting ~ $200MM in equity and is focused (100%) on providing structured land development capital to leading US homebuilders. These homebuilders love the vehicle as it keeps their balance sheets “land light”, frees up vertical construction debt lines, and provides “just in time” finished lot inventory to their vertical homebuilding machine. The investment structure effectively eliminates the traditional risks associated with land development and provides investors with an incredible downside protected cash flow profile, even before the investment period is over. The strategy yields investors a ~ 14% – 17%+ NET IRR (unlevered) all through current cash flow distributions (and that assumes no co-invest, interest rates stay elevated, no recycle, etc.). The firm has an incredible process (track record attached) and network set up to continue executing on its strategy. We have executed on a few hundred million within this strategy and have had tremendous success. We wanted to get this in front of you because we believe you’ll love the strategy while enjoying being a part of the “Waterloo System.” We do a lot of interesting things and partner with some of the largest capital providers out there. Our pipeline remains robust, currently featuring approximately 5,100 lots valued at over $1 billion+ in project costs and transactional volume. Importantly, there is no shortage of finished lot inventory available for US homebuilders.