Merchants Capital has closed Merchants Capital Tax Credit Equity Fund 31, a $160 million multi-investor tax credit equity fund backed by 10 institutional investors. The new vehicle is structured to provide equity to a series of affordable housing developments across multiple U.S. states, expanding the firm's tax credit investment platform.
Fund 31 is expected to inject equity into nine affordable housing properties located in Rhode Island, Ohio, Kentucky, Pennsylvania, Connecticut, Utah and Michigan. According to Merchants Capital, these investments will create or preserve more than 1,400 affordable homes, supporting housing supply in a range of markets and reinforcing the role of tax credit equity in financing attainable rental communities.
The investor base for Fund 31 includes both bank and economic investors, reflecting ongoing institutional interest in tax credit-driven affordable housing strategies. Of the 10 institutional participants, seven are repeat investors with Merchants Capital and three are new to the firm's tax credit platform, indicating both continuity of capital and incremental expansion of its investor relationships.
Ryan Thompson, Senior Vice President of Syndications and Investor Relations at Merchants Capital, noted that the closing of Fund 31 highlights the strength of the firm's relationships with its investor partners, as well as their continued support for the affordable housing mission. The fund adds to the firm's growing series of tax credit offerings that aggregate institutional capital for deployment across multiple properties.
Since Merchants Capital launched its tax credit equity platform five years ago, total capital raised has surpassed $3 billion. That cumulative figure comprises approximately $1.3 billion in multi-investor offerings such as Fund 31, $1.6 billion in proprietary fund investments dedicated to specific counterparties, and $91 million in state credit syndications. The closing of Fund 31 represents the latest addition to the multi-investor segment of this platform.
The new fund's focus on nine affordable housing properties underscores the continued reliance on tax credit equity to finance both the creation of new affordable units and the preservation of existing stock. With commitments from a mix of returning and new institutional investors, Merchants Capital is positioned to allocate the $160 million of equity across its identified pipeline, supporting more than 1,400 affordable homes in the participating states.
By extending its track record of multi-investor tax credit funds and surpassing the $3 billion capital raise milestone, Merchants Capital further solidifies its role as an intermediary connecting institutional capital with affordable housing projects. The firm's combination of multi-investor funds, proprietary capital vehicles and state credit syndications illustrates the range of structures being used to channel equity into the tax credit segment of the multifamily market.
