East Chop Capital, a Black-owned private equity fund, raised $9 million for its real estate fund focused on the vacation home rental market.
The firm manages $20 million in assets. East Chop’s Capital’s portfolio of luxury rental homes is marketed under the Gateway Society brand. Destinations include Matha’s Vineyard, Hilton Head, Virginia Beach, and Orlando.
This is the company’s second fund, and the capital raised so far is over double the size of the first fund. The firm’s first fund had two triple-digit ROI exits in 2021, 328 percent and 217 percent returns respectively, returned $2 million to investors, and is expected to deliver 20 percent annual returns, net of fees.
East Chop Capital was founded on the principle of closing the wealth gap among marginalized communities and addressing economic inequality. The firm had a base of 90 percent BIPOC, 10 percent White, and 17 percent women investors.
“We’re not new to this game. We’ve been owners, investors, and operators in this industry for the past eight years,” said Calvin Butts, Jr., co-founder and general partner. “Initially it was mostly self-funded, but since launching East Chop Capital in 2018 we’re truly excited to scale even further. Our strong base of individual accredited investors got us to $9 million and our first close. We remain focused on our target raise of $50 million.”