US: East Chop Capital has announced the closing of its inaugural $4 million fund, which has been created to capitalise on the $113 billion global vacation rental market.
The fund will acquire vacation rental homes in select markets across the US.
East Chop Capital was founded in 2018 by entrepreneurs and real estate developers, Calvin Butts and Carrington Carter. The firm seeks to expand access to capital and other resources for black, women, and minority entrepreneurs, while also building generational wealth for its investors. The firm says that when it comes to funding minority entrepreneurs, only one per cent goes to black founders, and just two per cent of investment professionals are black.
“Our firm was created to help accredited investors build wealth and gain exposure to private investments that they may not have access to,” said Butts. “East Chop Capital’s first fund exposes our investors to the travel and hospitality industry via luxury vacation rental homes, by owning and operating homes in places like Martha’s Vineyard, Hilton Head, Gatlinburg, Orlando, and several other markets that we will expand to in 2021.”
Serving as the marketing and management company for a $10 million portfolio, in which they generate seven-figure revenues, Getaway Society, the pair’s luxury vacation rental brand serves thousands of guests each year as they travel with family, friends, and every combination in between.
“As avid travellers, Getaway Society and our vacation rental home fund gave Calvin and I the opportunity to build a business based on something we both love, which is travel,” said Carter, general partner, East Chop Capital, and co-founder, Getaway Society. “As experienced entrepreneurs, we know the value of investors. Nurturing these relationships and having their support is what enabled us to build a $10 million real estate portfolio in just five years. Raising $4 million and closing this fund is a huge accomplishment for us. This new capital infusion will allow us to double the value of our portfolio over the next six months. We will continue to do the work needed to close the wealth gap by leveraging private equity to grow minority-owned businesses and generate strong returns for our investors.”