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Arc70 closes second fund on $230M

Wednesday, January 29, 2020
Opalesque Industry Update - Arc70 Fund II reached its hard cap of $230 million in capital commitments, exceeding its initial target of $200 million, in less than five months. The heavily oversubscribed fund received strong support from both new and existing top tier institutional investors, including notable asset managers, family offices, and high-net-worth individuals.

Arc70 is a San Francisco-based investment firm focused on financing the development of affordable housing. The firm is active across the United States and concentrates its efforts on communities where housing affordability needs are the greatest. Arc70 takes a long-term approach to partnering with stakeholders to create significant social impact and value to their investment partners.

Eaton Partners, a wholly owned subsidiary of Stifel Financial Corp. acted as exclusive placement agent for the second fund for Arc70 Capital.

"Arc70 has leveraged its deep sector experience to create a unique, sophisticated strategy within affordable housing, and the investor appetite for this tax advantaged, uncorrelated investment was in high-demand from institutional investors," said Peter Purcell, Director at Eaton Partners.

"We look to partner with differentiated investment platforms like Arc70 and it has been a pleasure to work with this team on an efficient, successful fundraise," added Peter Martenson, Partner at Eaton Partners.

Denny Hou, Co-Founder of Arc70 said, "We are extremely grateful for the continued support of our investors and partners. We appreciate Eaton Partners' expertise and its focus was instrumental to the success and speed of this process."

Adrian Garcia, Co-Founder of Arc70 added, "We are excited to build on the success of our first fund. We believe Arc70 is well-positioned to identify and capitalize on affordable housing investment opportunities."

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