Covenant closes its 12th value-add fund alongside an affordable housing sidecar, raising more than $1.1 billion to expand investment across multifamily and workforce housing opportunities.
Covenant Capital Group, a value-add multifamily real estate investment firm, has announced the final close of Covenant Apartment Fund XII, L.P., securing $860.35 million in capital commitments. The fund represents the largest capital raise in the firm’s 25-year history and reflects strong investor confidence in Covenant’s investment strategy and performance across different market cycles.
Alongside Fund XII, the firm also launched a sidecar vehicle, the Covenant Affordable Housing Fund, which attracted $269.73 million in committed capital. Together, the two vehicles have raised more than $1.1 billion, marking a significant milestone for Covenant’s flagship value-add fund series and its expanded focus on preserving affordable housing across the United States.
Fund XII reached its final close with support from both long-standing institutional partners and new investors, highlighting broad conviction in the firm’s value-creation approach. Covenant plans to continue deploying its capital into underperforming multifamily assets that present clear opportunities for renovation, operational improvements, and active asset management.
According to Govan White, President and Co-Founder of Covenant Capital Group, the firm remains focused on addressing the shortage of middle-market apartment housing, particularly across the rapidly growing Sunbelt region. He noted that the United States continues to face a significant gap in workforce housing, and Covenant’s value-add strategy aims to provide quality housing options for renters while delivering strong returns for investors. White also emphasized the importance of the new affordable housing sidecar, which is designed to preserve existing affordable communities and directly address the national shortage of such housing.
Dan Barber, Managing Director and Chief Financial Officer, said the strong demand for Fund XII demonstrates investor confidence in Covenant’s ability to execute across various market environments. With more than two decades of experience in value-add multifamily investments, the firm believes its operational expertise and active management approach position it well to acquire and reposition properties that require hands-on improvement.
Fund XII has already begun deploying capital, committing approximately $240 million to 14 apartment communities across the Sunbelt. The firm reports a robust pipeline of additional investment opportunities. Meanwhile, the Affordable Housing Fund has committed $94 million across 40 projects nationwide, further advancing Covenant’s efforts to preserve affordable rental communities.
Covenant Capital Group currently oversees more than $2.4 billion in assets under management across multiple markets, representing over 22,000 multifamily units. Since its founding, the firm has acquired more than $5 billion in multifamily assets across the country and has built a reputation for disciplined investment strategies and consistent, risk-adjusted returns.
Founded in 2001 and headquartered in Nashville, Covenant Capital Group specializes in value-add multifamily investments throughout the Sunbelt region. Over its history, the firm has invested in more than 73,000 apartment units, focusing on targeted renovations, operational efficiencies, and resident-focused improvements designed to enhance community quality while delivering durable returns for investors.
About Covenant Capital Group
Founded in 2001, Covenant Capital Group is a Nashville based private equity real estate firm specializing in value-add multifamily investments across the Sun Belt region. Over its 25-year history, the firm has invested in more than 73,000 apartment units and built a long-standing track record of operational excellence and strong investment performance. As a trusted steward of institutional investor capital, Covenant focuses on creating value through targeted renovations, operating efficiencies, and resident centric improvements to enhance community experience and drive durable returns.
