Yellowstone Capital Partners Announces Close of $95 Million of Funding to Finance the Development and Preservation of Attainable Housing in the United States

Yellowstone Capital Partners announced the close of $95 million in capital for its third fund focused on credit opportunities in the United States housing market. With the first close, Yellowstone brings together a unique investment platform and a global investor base aligned on the pursuit of real estate investments with positive social, environmental, and financial returns.

“Fund III represents an important step for the growth of Yellowstone’s impact investment platform” explains Co-Founder and CIO, Juan Carlos Moreno, “We’ve drawn from our insights investing in approximately 53,000 units of affordable housing throughout Colombia and Panama, across multiple socio-economic cycles, to develop our playbook for the U.S. markets. We’ve also made a significant co-investment in the Fund and assembled a United States-based team with broad experience and deep networks across real estate development, banking, and financial technology.” Yellowstone’s credit platform launched in early 2020 by Managing Partner, Paul Stockamore, and is headquartered in San Francisco, California.

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Fund III advances Yellowstone’s commitment to the UN Principles of Responsible Investing by targeting investments intended to preserve or increase the supply of attainable housing. A persistent undersupply of entry-level homes exacerbated by demographic demand trends should continue to provide a compelling market in need of substantial investment. “The projected stability of Fund III’s portfolio is partially derived from our focus on investments that create social good and environmental sustainability,” said Stockamore.  “Our Latin America portfolio has demonstrated that sustainability can positively transform neighborhoods and drive superior economic results by lowering turnover and increasing operating margins.”

Benefiting from the diverse expertise of its investment team, Fund III will pursue the financing of next-generation development strategies including: higher-density housing communities, co-living, modular-construction, net-zero energy communities, infill redevelopment, and adaptive reuse.  “We’re encouraged by the market’s response to our approach.” said Yellowstone’s Managing Director and Head of Originations, JP Ackerman. “Through our direct-lending platform, Techo Funding, we’ve evaluated approximately $2.2 billion of opportunities and selectively partnered with mission-aligned developers.” Through October 2021, Fund III has supported the development or preservation of 284 units across 4 markets. To date, all of Fund III’s investments are infill sites with projected affordability near the area median income.

“With the combined strength of our lending platform and the fund, we’ve unlocked a new model for how private capital can shape the future of housing,” said Stockamore. “We intend for Fund III to play a constructive role in mobilizing larger pools of capital towards innovative real estate development strategies with quantifiable social and environmental returns.”

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