Austin’s Kong Capital aims for $200M fund

A new private equity firm has received $4 million to invest in senior housing projects and aims to raise a $200 million fund for similar deals.

Austin-based Kong Capital said it received the $4 million in seed money from investors including real estate entrepreneurs as well as private equity and venture capital managers.

Kong said it will focus exclusively on investment opportunities in the senior housing sector including independent living, assisted living and memory care facilities.

Kong CEO Coe Schlicher was previously fund manager and partner at real estate developer Titan Development, where he was principally responsible for the senior living group.

In 2016, Schlicher created Titan Development Real Estate Fund I, a $200 million fund that backs multifamily, self-storage, senior living, and industrial developments.

“It has been great to gain the support from our initial investors who believe in our unique strategy,” Schlicher said. “The senior living sector continues to be a space with solid and predictable returns. Kong Capital is creating new solutions for a growing senior population.”

Kong said it is currently raising capital to fund several specific deals in independent living, assisted living and memory care facilities. It will subsequently begin efforts to raise a $200 million fund in the third quarter of 2020.

Kong Capital investor Raj Idnani, managing member of Austin-based Blueprint Capital Management, said: “Senior housing is an uncorrelated asset class that we believe will perform well regardless of the overall market environment.”