Former executives from McKinley Capital Partners have branched off to launch 643 Capital Management, a private investment firm targeting distressed real estate.
The new firm, based in San Francisco, is led by Gregor Watson, a founder and former principal of McKinley, and has about 40 employees.
The main goal of 643 Capital is to go after distressed single-family homes and has so far invested in more than 600 homes in California, the Southwest and the Pacific Northwest, totaling more than $100 million.
The firm is raising money and plans to invest up to $200 million in multiple asset classes.
“We are excited about the opportunity to grow our rental platform throughout the country, allowing us the ability to continue to run our current equity fund as well as look for new investment opportunities,” said Watson. “Pursuing our debt and equity platforms represents an opportunity to keep people in their homes as renters, stabilize neighborhoods and provide an attractive return for our investors.”
At McKinley, Watson served as portfolio manager for the distressed housing platforms and debt funds.