National Equity Fund® has directed $12.4 billion to 2,406 projects nationwide. Investments are made through multi-investor funds as well as single-investor funds. Those investor dollars have helped build 149,082 affordable units of rental housing since 1987. We have worked with more than 900 developers to make those deals happen. The projects in which we invest include “green” housing for families, permanent supportive housing for homeless veterans and the disabled, and service-enriched projects for seniors.
NEF currently has 159 funds under management. Multi-Investor Funds pool capital from multiple investors to spread risk and leverage impact. Proprietary Funds invest in projects on behalf of one investor. The investor typically exercises more control over underwriting and product selection than is the case with a multi-investor fund, though there is less opportunity to spread risk.
NEF’s fund structure is unique in the industry. Our asset management operation is self-sustaining and fully funded. Regardless of how much or how little new business we close, our asset management efforts continue intact through the 15-year compliance period.
Reserves are specifically earmarked for professional services and workout needs. Most syndicators utilize a working capital line that combines asset management fees, reserves and front-end fees. We believe separate reserves better protect investors’ interests, and we have structured our funds to reflect that.