Covenant Raises over $1.1 Billion for 12th Value-Add Fund, Affordable Housing Sidecar

NASHVILLE, Tenn.–(BUSINESS WIRE)–Covenant Capital Group (“Covenant”), a leading value-add multifamily real estate investment firm, today announced the final close of Covenant Apartment Fund XII, L.P. (“Fund XII”) with $860.35 million in capital commitments—the largest fundraise in the firm’s 25-year history.

In addition, Covenant created a sidecar vehicle for Fund XII, the Covenant Affordable Housing Fund, with $269.73 million in committed capital. The combined capital raised by Covenant for the 12th fund in its flagship value-add series and its affordable housing-focused sidecar is over $1.1 Billion.

Fund XII achieved its final close with strong backing from both existing and new institutional partners, underscoring broad conviction in Covenant’s value‑creation philosophy and long‑term performance history.

“We are looking forward to implementing our time-tested investment strategy of making value-add investments to preserve apartment communities across the rapidly growing Sunbelt,” said Govan White, President and Co-Founder of Covenant Capital Group. “The United States continues to have a shortage of middle-market apartments and Covenant Capital Group intends to provide an attractive solution for renters along with top tier returns for investors. In addition, we are delighted to offer our Fund XII investors the opportunity to invest in Affordable Housing through our new sidecar vehicle. This fund will directly address the shortage of affordable housing in the country by preserving existing affordable housing locations across the United States.”

Fund XII is designed to target underperforming multifamily properties with clear value‑add potential, focusing on assets that benefit from renovations, operational improvements, and disciplined asset management.

“Investor demand for Fund XII highlights the confidence in Covenant’s ability to execute in all market cycles,” said Dan Barber, Managing Director and Chief Financial Officer. “With more than two decades of experience in value‑add multifamily and a deep bench of operational talent, we believe we are well‑positioned to acquire assets that require hands‑on repositioning and active management—an area where our platform has excelled.”

Covenant has a long track record of results and currently oversees more than $2.4 billion in assets under management across multiple markets, representing over 22,000 multifamily units. Since inception, the firm has acquired more than $5 billion in multifamily assets nationwide and continues to execute a disciplined investment strategy focused on delivering durable, risk‑adjusted returns while enhancing the quality and long‑term performance of its communities. Fund XII has already committed $240 million to 14 apartment communities across the Sunbelt and has a robust pipeline of opportunities on the horizon. In addition, the Affordable Housing fund has already committed $94 million across 40 projects throughout the United States.

About Covenant Capital Group

Founded in 2001, Covenant Capital Group is a Nashville based private equity real estate firm specializing in value-add multifamily investments across the Sun Belt region. Over its 25-year history, the firm has invested in more than 73,000 apartment units and built a long-standing track record of operational excellence and strong investment performance. As a trusted steward of institutional investor capital, Covenant focuses on creating value through targeted renovations, operating efficiencies, and resident centric improvements to enhance community experience and drive durable returns.

For more information, please visit www.covenantcapgroup.com.

Contacts

Media Contact:
Alexis Treadwell
Associate | Investor Relations
COVENANT CAPITAL GROUP
4515 Harding Road, Suite 210 | Nashville, TN 37205
615.250.1635 | atreadwell@covenantcapgroup.com
www.covenantcapgroup.com