East Chop Capital secures $9 million for real estate fund
- East Chop Capital has announced that it has raised $9 million for its real estate fund. These are the details.
East Chop Capital, a private equity firm with $20 million in assets under management and a diverse base of 90% BIPOC investors, 10% white and 17% women, announced that it has raised $9 million dollars for its real estate fund focused on the $112 billion global vacation rental market. It is the company’s second fund, capitalizing on the intersection of real estate, the rebound in travel and the future of hybrid work. Capital raised so far is more than double the size of the first fund with investor commitments received in 85% less time.
East Chop Capital’s portfolio of luxury vacation homes is marketed to travelers under the Getaway Society brand and is spread across the United States, including Martha’s Vineyard, Hilton Head, Orlando, Gatlinburg, Virginia Beach, Broken Bow ( Oklahoma), Banner Elk (North Carolina), and Port Aransas (Texas). And the company’s first fund had two triple-digit ROI outflows in 2021, 328% and 217% returns respectively, brought in nearly $2 million to its investors, and is on track to generate annual returns. 20%, net of fees.
With a different approach to private equity, the founders are committed to providing the best combination of financial, educational and social returns. And East Chop Capital was created to reduce the wealth gap between diverse communities and create generational wealth.
East Chop Capital conducts investor retreats, invites its investors to participate in other private equity and venture capital investment opportunities, and helps investors analyze their own transactions and businesses. And with a national focus on environmental, social and governance (ESG), as well as other impact investing initiatives, East Chop Capital is well positioned to address economic disparities and lack of access to capital in America for individuals, entrepreneurs and minority business owners.
“The trend we’re most optimistic about is the future of work, where hybrid is the new normal for people who work from laptops. People live, work and travel with a flexibility they never had before. With this flexibility, they choose to be near lakes, beaches, mountains, and entertainment destinations. They’re looking for amazing homes to stay in with family and friends, and we can’t wait to welcome them.
— Carrington M. Carter, Co-Founder and General Partner
“We are not new to this game. We have owned, invested in and operated this industry for eight years. Initially, it was mostly self-funded, but since launching East Chop Capital in 2018, we’re really excited to scale even further. Our strong base of accredited individual investors allowed us to reach $9 million and our first close. We remain focused on our fundraising goal of $50 million.
— Calvin L. Butts, Jr., Co-Founder and General Partner