Merchants Capital Closes Two Tax Credit Equity Funds Totaling $233.4 Million

Rhea-AI Summary

Merchants Capital, under Nasdaq: MBIN, has successfully closed two tax credit equity funds, raising over $233.4 million. Merchants Fund V, with $172.5 million from 16 institutional investors, aims to enhance affordable housing by creating or preserving 1,958 homes across 11 states. Additionally, Merchants Fund III, worth $60.9 million, will invest in eight projects in three states, generating 593 affordable homes in San Antonio and Kansas City. The funds exemplify Merchants Capital's commitment to affordable housing and its extensive capital provision of over $22 billion since inception.

Positive

• Raised over $233.4 million through two equity funds, enhancing capital availability.
• Merchants Fund V will create or preserve 1,958 affordable homes in 11 states, significantly increasing housing supply.
• Merchants Fund III will provide equity for 593 affordable homes, focusing on revitalizing historic properties.

Negative

• None.

CARMEL, Ind., Dec. 22, 2021 /PRNewswire/ -- (Nasdaq: MBIN) Merchants Capital announced today the closing of two tax credit equity funds totaling more than $233.4 million. Merchants Capital Tax Credit Equity Fund V, L.P. (Merchants Fund V) represents the company's first national multi-investor fund with a total capital raise of $172.5 million from 16 institutional investors, including both banks and insurance companies. Merchants Fund V will infuse equity into 18 affordable housing properties that will create or preserve more than 1,958 affordable homes in 11 states.

Merchants Capital further announces the closing of Merchants Capital SW Tax Credit Equity Fund III, L.P. (Merchants Fund III), a $60.9 million proprietary fund with a Fortune 500 company that will provide equity capital into eight affordable housing projects structured with Low-Income Housing and Historic Rehabilitation Tax Credits in three states. The investment in Merchants III will create 593 affordable homes in three states and revitalize historically significant housing properties in San Antonio and Kansas City.

"The successful closing of Merchants Fund V and III, with more than $233.4 million in capital raised from 17 investors, is a milestone achievement for our affordable housing equity platform," said Julie Sharp, Senior Vice President of Tax Credit Equity at Merchants Capital. "With more than $22 billion in capital provided to multifamily housing since inception, our company has emerged as a leading debt and equity provider for affordable housing across the United States."

Merchants Capital's national multi-investor fund, Merchants Fund V, was designed to make a large social impact. The fund is structured with an innovative and first-of-its-kind Social Impact Reserve that is projected to deploy nearly $500,000 in capital to support tenants over the life of the fund. The developer sponsors also include some of the largest affordable housing owner/operators in the nation.

"We are grateful to our developer and investor partners for their partnership," said Linda Hill, Senior Vice President of Tax Credit Equity at Merchants Capital. "The successful closing of Merchants Funds V and III is a testament to the strength of our relationships and innovative platform we have built."

The 25 properties included in Merchants Funds III and V are in Indiana, Minnesota, North Carolina, Ohio, South Carolina, Michigan, Texas, Kentucky, Tennessee, Wisconsin, Missouri and California.

To learn more about Merchants Capital and its services, visit www.merchantscapital.com or find Merchants Capital on Facebook, Twitter, LinkedIn and Instagram.

ABOUT MERCHANTS BANCORP
Merchants Bancorp is a diversified bank holding company headquartered in Carmel, Indiana operating multiple lines of business, including multi-family housing and healthcare facility financing and servicing, mortgage warehouse financing, retail and correspondent residential mortgage banking, agricultural lending and traditional community banking.  Merchants Bancorp, with $11.0 billion in assets and $8.9 billion in deposits as of September 30, 2021, conducts its business through its direct and indirect subsidiaries, Merchants Bank of Indiana, Merchants Capital Corp., Farmers-Merchants Bank of Illinois, and Merchants Mortgage, a division of Merchants Bank of Indiana. For more information and financial data, please visit Merchants' Investor Relations page at investors.merchantsbancorp.com.

ABOUT MERCHANTS CAPITAL
Established in 1990, Merchants Capital is one of the nation's top lenders for the refinance, acquisition, new construction and substantial rehabilitation of multifamily, affordable, senior and student housing. Whether you are considering tax credit syndication, Freddie Mac, Fannie Mae, HUD/FHA insured or balance sheet financing, let our personalized services help you meet your financing objectives. Experience the creativity of a small lender, with all the capabilities of a large institution. To learn more about Merchants Capital, visit www.merchantscapital.com.

Forward-Looking Statements 
This press release contains forward-looking statements which reflect the company's current views with respect to, among other things, future events and financial performance. These statements are often, but not always, made through the use of words or phrases such as "may," "might," "should," "could," "predict," "potential," "believe," "expect," "continue," "will," "anticipate," "seek," "estimate," "intend," "plan," "projection," "goal," "target," "outlook," "aim," "would," "annualized" and "outlook," or the negative version of those words or other comparable words or phrases of a future or forward-looking nature. These forward-looking statements are not historical facts, and are based on current expectations, estimates and projections about the industry, management's beliefs and certain assumptions made by management, many of which, by their nature, are inherently uncertain and beyond our control, such as the potential impacts of the COVID-19 pandemic. Accordingly, the company cautions that any such forward-looking statements are not guarantees of future performance and are subject to risks, assumptions, estimates and uncertainties that are difficult to predict. Although the company believes that the expectations reflected in these forward-looking statements are reasonable as of the date made, actual results may prove to be materially different from the results expressed or implied by the forward-looking statements.  A number of important factors could cause actual results to differ materially from those indicated in these forward-looking statements, including the impacts of the COVID-19 pandemic, such as the severity, magnitude, duration and businesses' and governments' responses thereto, on the company's operations and personnel, and on activity and demand across its businesses, and other factors identified in Merchant Bancorp's "Risk Factors" or "Management's Discussion and Analysis of Financial Condition and Results of Operations" in its Annual Report on Form 10-K and other periodic filings with the Securities and Exchange Commission.  Any forward-looking statements presented herein are made only as of the date of this press release, and the company does not undertake any obligation to update or revise any forward-looking statements to reflect changes in assumptions, the occurrence of unanticipated events, or otherwise.

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SOURCE Merchants Bancorp