Invest passively like an LP. Earn like a GP.
Executive Summary
Ginkgo GP Fund II (“the Fund”) is a closed-end fund providing investors access to general partner economics. Fund intends to create across a diversified portfolio of workforce multifamily investments from existing, multifamily housing stock throughout the Carolinas. Unlike traditional real estate offerings where investors participate as passive limited partners, this structure allows investors to share in the promote— (aka “out performance” or just “performance fees”) typically reserved for sponsors—driving enhanced return potential.
The Fund will co-invest alongside Ginkgo-sponsored joint ventures, targeting assets where operational improvements, capital investment, and market dislocation create opportunities for outsized returns.
At the fund level, Ginkgo is targeting approximately 20% net IRRs and a 2.5x equity multiple, generated from a portfolio of 8 to 15 investments over a five-year term.
Key Highlights:
- $25MM target fund size
- 8–15 diversified investments
- North & South Carolina focus
- GP promote participation across all deals
Why Now?
The current investment environment is defined by a unique convergence of macroeconomic pressures that are reshaping multifamily ownership. Rising interest rates, combined with aggressive acquisition activity in 2021–2023, have created stress across many capital structures. As loans mature and refinancing options remain constrained, a growing number of owners are facing limited paths forward.
At the same time, new supply has temporarily outpaced demand in several markets, putting pressure on occupancy and rent growth. This dynamic is expected to persist through 2026–2027, creating a window where well-capitalized buyers can acquire assets at more attractive bases.
This dislocation is not structural—it is cyclical. Ginkgo believes this period represents one of the most compelling acquisition environments in over a decade.
The Strategy: Investing as the GP
The defining feature of the Fund is its ability to invest alongside Ginkgo as a co-general partner. In traditional real estate transactions, the GP earns a disproportionate share of profits after a preferred return hurdle is met. This Fund allows investors to step into that position.
In practical terms, investors in the Fund:
- Commit capital like an LP
- Participate in returns like a GP
- Benefit from promote structures typically ranging from 10% to 30%+
This structure creates a return profile where fund-level performance can exceed the underlying deal-level returns, driven by performance fees rather than solely asset appreciation.
Importantly, each investment stands on its own. Gains and losses are isolated at the asset level, allowing strong performers to drive overall fund returns without being diluted by underperforming investments.
Investment Focus
The Fund is focused on attainable workforce housing, a segment that has consistently demonstrated resilience across market cycles. These assets typically serve renters by necessity and offer a compelling value proposition relative to new construction.
Ginkgo targets properties that:
- Were built prior to 2000
- Offer rents significantly below new supply
- Present operational or physical improvement opportunities
Key Strategy Elements:
- Acquire at a discount to replacement cost
- Execute targeted renovations through in-house construction
- Improve operating performance through vertical integration
- Exit or recapitalize within ~5 years
Why the Carolinas
The Fund’s geographic focus reflects a long-standing conviction in the growth dynamics of North and South Carolina. These markets benefit from strong in-migration, diversified employment bases, and a relatively affordable cost of living—all of which support long-term rental demand.
Over the past several years, the Carolinas have consistently ranked among the top U.S. regions for population growth. This trend has been driven by job creation across sectors such as finance, technology, manufacturing, and logistics.
In addition to favorable demand fundamentals, the region offers:
- Business-friendly regulatory environments
- High quality of life and lifestyle appeal
- Deep talent pipelines from major universities
Together, these factors create a durable foundation for multifamily investment performance.
Track Record
Ginkgo brings over 40 years of experience investing in and operating multifamily communities. Across multiple investment vehicles and market cycles, the firm and its predecessors have owned, managed, and liquidated more than 50,000 apartment units.
The platform is vertically integrated, with in-house capabilities spanning acquisitions, construction, and property management. This structure allows for greater control over execution and cost efficiency across the investment lifecycle.
Historical realized investments:
- 26.4% net IRR and 3.07x multiple (Single asset syndications)*
- 35.6% net IRR and 4.01x multiple (2018 Impact Fund; 2 assets remaining)
- ~10–11% annualized total returns (Ginkgo REIT)
Notably, Ginkgo’s prior GP-focused fund (2018 Impact Fund) delivered significantly above-target returns, validating the strategy of capturing promote economics at scale.
* Disclosure: Represents the aggregate weighted average performance for our deal-by-deal syndicated investments for the investor (LP) return.
Fund Structure and Terms
The Fund is structured as a closed-end vehicle with a five-year term, plus extension options, allowing sufficient time to deploy capital and execute the business plan across multiple investments.
Investors will receive periodic distributions, although timing may vary depending on asset repositioning and market conditions.
Select Terms:
- Target IRR: ~20%
- Equity Multiple: ~2.5x
- Term: 5 years + (3) one-year extensions
- Distributions: Target 5%–6% annually (not guaranteed)
Minimum Investments:
- Class I: $1,000,000
- Class A1: $250,000
- Class A2: $50,000
Promote / Carry:
- 10% preferred return (cumulative) realized by the Fund Members, 20%-35% of future distributions will be allocated to the Manager, dependent upon investor class.
Fees, promotes and risks are outlined in the Private Placement Memorandum located within the Investor Packet.
Alignment of Interest
Alignment between sponsor and investor capital is a core component of the strategy. Ginkgo and its affiliates will commit a meaningful portion of the total fund equity, ensuring shared outcomes across all investments.
Additionally, a significant percentage of Ginkgo REIT equity is owned by employees, management, and their families—further reinforcing a long-term, aligned investment approach.
Documents
Investor Packet:
