Trinity Fund Advisors LLC, an affiliate of Trinity Real Estate Investments LLC (“Trinity”), a leading private real estate investment firm, announced today the final close of Trinity GP Fund I L.P. (the “Fund”), the firm’s inaugural U.S. discretionary commingled real estate fund. The Fund was oversubscribed and raised a total of $520 million, significantly exceeding its $315 million target.
The Fund’s investors include a wide range of institutional investors, sovereign wealth funds, domestic and international family offices, and high-net-worth individuals. The capital commitments make the Fund one of the largest U.S. hospitality focused real estate private equity funds targeting value-added investments in upscale and luxury resorts and hotels in the U.S.
“Closing our inaugural U.S. discretionary commingled fund represents an important milestone for Trinity as it continues our evolution from a deal-by-deal investor to a global fund manager,” said Sean Hehir, Managing Partner, President, and Chief Executive Officer of Trinity. “We are grateful for the outsized investor demand this vehicle received, which is a testament to the compelling market opportunity and the reputation we’ve built over the past 25 years.”
Through the GP structure which invests limited partner capital alongside the Fund, the Fund brings over $2.6 billion of capital to invest in debt, preferred equity, and traditional equity positions that meet the Fund’s strict underwriting criteria. In addition, based on the strength of Trinity’s pipeline, the firm expects to generate significant co-investment opportunities for its strategic partners over the next three years. The Fund will leverage Trinity’s longstanding industry relationships, established platform, and track record of investing across all market cycles to acquire a portfolio of hotels primarily in the top 25 U.S. markets. Trinity believes the current dislocation in the hospitality market presents unique opportunities over the coming years to acquire upscale and luxury assets at discounts to intrinsic value and produce outsized returns for its investors.
“The current environment is highly conducive to the Fund’s investment strategy and the skillset our team has refined over the course of our respective careers,” said Lee Neibart, Chairman and Senior Partner of Trinity. “We look forward to leveraging our competitive advantages to source and execute transactions that are capable of delivering attractive risk-adjusted returns to our investors.”
Daniel O’Donnell, Global Head of Citi Investment Management Alternatives, whose team selected the Fund for distribution to Citi’s global private banking client base, stated, “the Fund was extremely well-received by our client base globally, exceeding our target fundraise expectations. The strong global interest levels for this offering speaks to the relevance of the strategy in today’s market environment and the strength of the Trinity team.”
Since its founding in 1996, Trinity has established itself as one of the world’s leading hospitality investors. The firm has executed some of the industry’s most recognizable trades, including the Westin Maui Resort & Spa, Grande Lakes Orlando Resort, and the JW Marriott Phoenix Desert Ridge Resort & Spa. Trinity has served as a trusted operating partner for leading institutional investment firms such as Oaktree Capital Management, Walton Street Capital, Ares Management, and Elliott Management.
About Trinity Real Estate Investments LLC
Trinity is a private real estate investment firm with a 25-year history of generating value-add returns. Since its inception, Trinity has consummated more than $7 billion worth of global real estate transactions in the United States, Mexico, Europe, and Japan by leveraging its deep institutional knowledge and longstanding local relationships. With considerable expertise covering the full spectrum of property investment, development, and value-enhancing asset management, Trinity generates unique and opportunistic real estate investments in world-class markets. Based in Honolulu, Hawaii, with an office in Beverly Hills, California, Trinity’s pursuits span an array of geographic locations and asset types, but share the commonality of being predicated upon best-in-class local relationships and teams of professionals for sourcing, executing, and realizing investments within each of its target markets. For additional information, please visit www.trinityinvestments.com.