Texas Strategic Growth Fund, L.P. Pursues $100M Offering, Secures $17.6M in Sales

The Dallas-based real estate fund attracts 147 investors and plans further fundraising to meet its target.

October 18, 2024

Real Estate Focus and Active Fundraising

Texas Strategic Growth Fund, L.P., which incorporated in 2022, is based in Dallas, Texas. The company operates in the real estate sector, emphasizing growth through strategic property investments. The partnership structure allows for investor participation in the fund, which aims to capitalize on market opportunities in real estate.

In its latest filing with the U.S. Securities and Exchange Commission (SEC), the fund amended its earlier disclosure and revealed that it had raised $17,615,000 to date. With a goal to secure a total of $100 million through its equity offering, the fund continues to actively seek additional investments.

The SEC Form D filing lists Richard Stockton as the Executive Officer and Jim Plohg as General Counsel and Vice President, both key figures in managing the general partner of the fund. The legal structure also includes the fund's sponsor, TSGF General Partner, LLC, which supports the capital-raising efforts.

Investment and Sales Details

The fund requires a minimum investment of $50,000 from participants, though it may accept smaller investments at the discretion of the general partner. The filing notes that there are no current plans to offer securities to non-accredited investors, indicating that the fund is primarily targeting high-net-worth individuals or institutions.

The fund has successfully attracted 147 investors so far, with ongoing solicitations in key states including Texas, California, Georgia, and New York. As part of its marketing efforts, the fund has engaged brokers and financial services companies to promote the offering to potential investors. Sales commissions are estimated at $9 million, highlighting the cost of distribution and outreach efforts tied to the fundraising campaign.

Use of Proceeds and Projected Expenses

A significant portion of the proceeds will be allocated to organizational and offering-related expenses, including up to $1.5 million directed to executive officers, directors, or promoters of the fund. These funds are earmarked for operational costs and the compensation of those involved in the promotion and management of the offering.

The Texas Strategic Growth Fund, L.P. plans to continue its capital-raising efforts over the next year, with an intent to fully subscribe the offering. Given the growth of the real estate market and the continued demand for property investments, the fund aims to seize investment opportunities in both commercial and residential sectors.