Arc70 Capital racks up $550m for third fund

Arc70 Capital has closed its third fund at $550 million, beating its $400 million target. Arc70 Fund III’s limited partners include family offices and high-net-worth individuals. Eaton Partners was the placement agent for the fund. Based in San Mateo, California, Arc70 invests in the development of affordable housing.

PRESS RELEASE

ROWAYTON, Conn., Sept. 02, 2021 (GLOBE NEWSWIRE) — Eaton Partners, one of the largest placement agents and financial advisory firms and a wholly-owned subsidiary of Stifel Financial Corp. (NYSE: SF), is pleased to have acted as the exclusive placement agent for the third Arc70 Capital (“Arc70”) fund.

Arc70 Fund III, LP announced its final closing with $550 million in capital commitments, exceeding its initial target of $400 million, in less than six months. The fund received strong support from both new and existing top tier institutional investors, including family offices and high-net-worth individuals.

Arc70 is a San Mateo, California-based investment firm focused on financing the development of affordable housing. Arc70’s principals have invested in more than $3.1 billion of affordable housing related transactions, which have built or preserved over 30,000 units across the country.

According to the National Association of Home Builders, a $10 million affordable housing investment creates 140 homes, 170 jobs, and $11 million of income for the local community. Over 11 million households spend more than half their income on rent—affordable housing promotes financial stability, economic mobility, better health outcomes, and educational performance. Arc70 takes a long-term approach to collaborating with stakeholders to create significant social impact and value to their investment partners.

“Affordable housing needs in the United States are vast and growing,” said Peter Purcell, Director at Eaton Partners. “Like Fund II, this fund saw high institutional investor demand due to the team’s experience and its tax advantaged, uncorrelated strategy within affordable housing. It was our pleasure to work with Arc70 to raise capital that will ultimately serve low-income families, seniors, and people with disabilities.”

“We look to partner with opportunistic, ESG-focused strategies like this,” added Peter Martenson, Partner at Eaton Partners. “Investor appetite is in high-demand, evidenced by this successful fundraise. Congratulations to the Arc70 team.”

Eaton Partners also acted as the exclusive placement agent for Arc70 Fund II, raising $230 million in capital commitments at closing in January 2020.

“We are thankful that with the support of our investment partners and stakeholders, we are able to create a positive change for underserved communities,” said Adrian Garcia, Co-Founder of Arc70. “We are pleased to continue our growth, and make an impact in affordable housing.”

Denny Hou, Co-Founder of Arc70 added, “We are excited to build on the momentum of our previous funds, and Arc70 continues to be well-positioned to invest in unique affordable housing opportunities. We truly appreciate the continued support of our investors and partners. Thank you to Eaton Partners for working with us on another highly successful fundraise.”

About Eaton Partners
Eaton Partners, a Stifel Company, is one of the world’s largest capital placement agents and fund advisory firms, having raised more than $114 billion across more than 160 highly differentiated alternative investment funds and offerings. Founded in 1983, Eaton advises and raises institutional capital for investment managers across alternative strategies – private equity, private credit, real assets, real estate, and hedge funds/public market – in both the primary and secondary markets. Eaton Partners maintains offices and operates throughout North America, Europe, and Asia.

Eaton Partners is a division of Stifel, Nicolaus & Company, Incorporated, Member SIPC and NYSE. Eaton Partners subsidiary Eaton Partners (U.K.) LLP is authorized and regulated by the Financial Conduct Authority (FCA). Eaton Partners subsidiary Stifel Hong Kong Limited, doing business as Eaton Partners Hong Kong, is approved as a Type 1-licensed company under the Securities and Futures Commission (SFC) in Hong Kong. Eaton Partners and the Eaton Partners logo are trademarks of Eaton Partners, LLC, a limited liability company. ® Eaton Partners, 2021. For more information, please visit https://eaton-partners.com/.

About Arc70 Capital
Arc70 Capital is a private investment firm focused on affordable housing. Since inception in 2017, Arc70 has financed the development of over 20,000 units of affordable housing. The firm manages approximately $900 million of equity capital commitments and is based in San Mateo, California.

About Stifel
Stifel Financial Corp. (NYSE: SF) is a financial services holding company headquartered in St. Louis, Missouri, that conducts its banking, securities, and financial services business through several wholly owned subsidiaries. Stifel’s broker-dealer clients are served in the United States through Stifel, Nicolaus & Company, Incorporated, including its Eaton Partners business division; Keefe, Bruyette & Woods, Inc.; Miller Buckfire & Co., LLC and Stifel Independent Advisors, LLC. The Company’s broker-dealer affiliates provide securities brokerage, investment banking, trading, investment advisory, and related financial services to individual investors, professional money managers, businesses, and municipalities. Stifel Bank and Stifel Bank & Trust offer a full range of consumer and commercial lending solutions. Stifel Trust Company, N.A. and Stifel Trust Company Delaware, N.A. offer trust and related services. To learn more about Stifel, please visit the Company’s website at www.stifel.com. For global disclosures, please visit https://www.stifel.com/investor-relations/press-releases.