AI Magazine Issue 3 2017

Acquisition International - March 2017 63 Structured Equity Solutions which distinguish DVO’s investment products from those of its peers. We work hard to generate appropriate risk-adjusted returns for our investors and do so every day. Future opportunities We are currently planning the first closing of our Gap Equity Fund, LP in March, ultimately seeking to raise $100 - $150 million to continue the company’s growth trajectory. As we set our sights on the initial closing, we are simultaneously working on a robust pipeline of opportunities which is in excess of $50 million. A lack of capital available for middle-market investments results in significant inefficiencies and robust demand for gap equity of $2 - $15 million. Sustainable demand for multifamily rental units and rent growth is expected to continue due to favourable demographic trends, sluggish single- family housing, expansion of labour markets and wage growth and inflation. Our industry is coming off a 5+ year expansion cycle, in terms of rents, demand, values and availability of both debt and equity. As we face the prospect of additional inflation on the horizon, and monetary policy tightening, we must stay vigilant about our underwriting assumptions and the quality of local partners with whom we make investments.