Hilltop Closes $288M Fund as Multifamily Capital Comes Back

Hilltop Residential is emerging from a choppy capital markets backdrop with its biggest raise yet.

The Houston-based multifamily investment firm closed Hilltop Growth Fund VI with $288 million in commitments, the company said Tuesday. The Houston Business Journal reported that the raise marks the firm’s largest fund to date, positioning it to chase between $1.5 billion and $2 billion in apartment acquisitions across the Sun Belt.

The fund drew backing from a wide mix of institutional and private investors, including endowments, foundations, insurance companies and family offices, suggesting a continued appetite for multifamily exposure, according to the outlet. The closing comes as many sponsors have struggled to raise equity amid elevated interest rates and lingering uncertainty around valuations.

Hilltop managing partner David Wylie said in a press release that the milestone was a signal of investor confidence despite the slowdown. The firm is wagering that the slowdown will create buying opportunities, particularly for well-capitalized operators able to purchase while others sit on the sidelines.

Launched in 2017 by managing partner Greg Finch, a co-founder of Houston-based Venterra Realty, Hilltop has built its holdings across 15 markets in Florida, Georgia, North Carolina, Tennessee and Texas. The firm now manages roughly $3 billion in apartments, spanning about 13,000 units, with a strategy focused on acquiring and repositioning buildings in high-growth metros.

Fund VI is already partially deployed, with nine buildings acquired and additional deals in the pipeline. Hilltop expects to fully invest the fund within two years, according to the publication.

The raise also follows the firm’s push into development. Last year, Hilltop launched a dedicated development arm aimed at ground-up multifamily projects in growth markets, a broader expansion beyond its core acquisition strategy, according to the release.

The firm recently picked up apartments in St. Petersburg late last year, and acquired the 292-unit Lincoln Heights complex in Houston, since rebranded Ainsley Heights, according to the outlet.

— Eric Weilbacher