Procida set to expand New York-area debt fund
Procida Funding has retained a placement agent to more broadly market its 100 Mile Fund to institutional and individual investors. The company anticipates that the size of the fund will rise from about $60m to between $100m and $150m with the assistance of placement agent protoCapital.
The Englewood Cliffs, N.J.-based real estate private equity fund wants to about $100m in advance of a potential downturn in the U.S. economy that will create distressed lending situations, according to Billy Procida, president. “I envision a new disaster [will be] going on [next year] and this will allow us to advise and rescue loans,” Procida said, noting that he is seeing a rise in construction jobs that are over budget and behind schedule, unsophisticated operators and an increase in building permits.
The fund’s strategy to invest in a 100 mile radius around its headquarters — will remain unchanged. The open-ended fund focuses on revitalizing underserved communities, restoring vacant buildings, and completing unfinished construction projects. The fund makes short-term loans of $2m to $50m.
Procida selected protoCapital, led by Andrew Kowalczyk and Thomas Bumbolow, due to its boutique size and similar cultures between the companies. “I didn’t want to go with some big place. For me, conveying my culture and the ‘How I do and why I do it’ is as important as explaining the investment process,” he said.
Procida Funding, a registered broker dealer, is able to expand its reach to individual investors under the JOBS Act. Hiring a placement agent will free Procida up to focus on his core business. “I’ll be able to focus on deals rather than raising money,” he said, noting that he meets with each borrower and sees each property in which his fund is investing.
CEO & President Procida Funding & Advisors