NEW ORLEANS – On Jan. 19, Saints and Pelicans proprietor Gayle Benson’s Benson Capital Companions introduced the preliminary shut of a brand new actual property fund with greater than $50 million in commitments from 10 totally different traders.
The preliminary shut of the brand new fund comes simply over two years after the debut of BCP’s first funding automobile, a $56 million enterprise capital fund targeted on enterprise institution, workforce enlargement and wealth creation within the South Bay. The primary fund’s portfolio contains early-stage corporations targeted on robotics, shopper functions, biotechnology, industrial know-how and different high-growth areas. Notable funding recipients embody Hampr, a Lafayette startup that is primarily an Uber for laundry; and AxoSim, a New Orleans-based biotech firm advancing pharmaceutical testing on synthetics slightly than animals.
Traders within the first fund embody Entergy, Elevating Cane’s and BankPlus.
“The thought after we began Benson Capital Companions was to construct on the worth of boosting our native financial system and show to the remainder of the nation that New Orleans and the encompassing space is ripe for alternative,” Benson mentioned. “The preliminary shut of our first actual property fund is an instance of the progress we’re making in our effort to fill the void of restricted funding capital in our area. It’s vitally essential that we proceed to be a catalyst for selling financial improvement. That is simply one other step, one other fund, one other alternative to construct our financial system, add new capital and create new jobs whereas producing returns for our traders.”
The actual property fund, which focuses on the identical geographic footprint as BCP’s enterprise capital fund, has already invested $16 million in regional tasks with a “wholesome pipeline” at present in due diligence, in keeping with a Benson spokesman. Ochsner Well being is among the principal traders of the fund.
“Ms. Benson and the organizations she leads are a vital element of our area’s financial and cultural well being,” mentioned Ochsner CEO Pete November. “We have seen how a lot our communities profit after we spend money on them and deal with the long run. Ochsner is happy to hitch forces with Benson Capital Companions to assist revitalize the communities we serve.”
Like a enterprise capital fund, the brand new actual property fund is focusing on mid-market tasks which are too huge for smaller native traders and never large enough to draw the curiosity of huge nationwide traders. Actual property tasks with a complete value between $5 million and $25 million fall into that class. One recipient of the funds is a pair of workplace buildings, quickly to be renamed Riverside Park, at Energy Boulevard and I-10 in Metairie. It appears doable that the fund might additionally spend money on the late Chris Owens’ former Bourbon Avenue nightclub, which Benson purchased in 2022.
“The actual property fund will make investments not simply in New Orleans however in your entire area,” mentioned Greg Bensel, BCP’s senior vice chairman of communications. “We will likely be trying to make investments {dollars} all through the state of Louisiana and we’re at present working with folks throughout the state to determine alternatives. Markets like Birmingham, Jackson, Huntsville and Cellular are additionally very viable in our plan. It is a complete regional funding and dedication.”
Jones Walker offered all authorized preparation and documentation for Benson Capital Actual Property I LP and Benson Capital Fund I LP.
BCP has employed Keith Schneider, who most not too long ago labored at TriGate Capital in Dallas, to assist run the second fund’s day-to-day operations. He joins Mike Katz and Caroline Crumley, who’ve been on the workforce for the reason that debut of BCP’s first fund.
