The Vistria Group, a Chicago-based private investment firm, said this week that its affordable housing strategy now has more than $2.5 billion in assets under management, making it one of the largest such ventures in the U.S.
The real estate fund, which the investment firm says seeks to deliver superior financial returns and meaningful impact, launched in March 2023 and has attracted a broad range of investors in both the United States and Europe. Vistria has already acquired more than 7,000 units, over 80% of which are affordable.
Vistria has made 15 investments spanning New York, Texas, Georgia, California, Michigan, Illinois and Washington D.C., ensuring long-term affordability through newly created partnerships. Notably, over 2,000 units in the portfolio were formerly market-rate units that have been converted to affordable housing under Vistria’s ownership.
“Institutional investors are recognizing what we’ve long known—high-quality affordable and workforce housing isn’t just essential, it’s one of the most durable and scalable asset classes in real estate,” said Margaret Anadu, senior partner at the Vistria Group who leads and co-founded the firm’s real estate strategy.
“Surpassing $2.5 billion in just two years despite launching during the most challenging private real estate fundraising environment since 2012 proves that capital is flowing to this dedicated strategy, and the opportunity is only getting stronger. With permanent capital and a national portfolio already in place, we’re not just participating in this market—we’re defining it,” she said in a press release announcing the milestone.
She said one of the housing strategy’s core objectives is to create a new industry blueprint—demonstrating how institutional capital can be deployed at scale to drive market returns while also addressing the worsening U.S. affordable housing crisis.
Vistria is raising dedicated permanent capital, allowing investors to tap into the long-term, resilient value of high-quality housing that remains accessible to the majority of American families, she said.
Vistria’s multi-pronged approach—preserving, improving and producing affordable and workforce housing through acquiring existing affordable units, converting market rate housing to affordable housing, and developing new mixed-income housing—has resonated with both private and public sector partners, said Martin Nesbitt, co-CEO and senior partner at Vistria Group.
The strategy has already attracted blue-chip investors, including public pensions, global investment banks and asset managers, leading U.S. foundations, insurance companies and some of the largest family offices in the U.S. and Europe.
“But what truly sets us apart is how we approach real estate in concert with our work across healthcare, knowledge & learning solutions, and financial services—the fundamental sectors that shape communities and society. This holistic perspective on housing gives us unique insights and opportunities to create value both for our housing communities and investors,” Nesbitt said.
In addition to its affordable housing segment, Vistria invests in essential industries like health care, knowledge and learning solutions and financial services aimed at delivering value for investors as well as communities, employees and consumers. The firm has almost $16 billion in assets under management in all its practice areas.
Read more: Strategic investment in traditionally underserved communities
