Key facts
- Mavik Capital Management is raising $1 billion for its new VS3 fund.
- The fund will focus on distressed commercial real estate assets and mortgage-backed securities.
- CEO Vik Uppal highlighted opportunities created by capital needs and market dislocation.
- Mavik's previous funds successfully raised capital, exceeding targets.
- The firm has over $2 billion in assets under management.
Mavik Capital Management, an investment firm based in New York, is reportedly seeking to raise $1 billion for a new distressed real estate fund named VS3. The fund aims to acquire distressed commercial real estate assets and commercial mortgage-backed securities, capitalizing on market dislocations and a need for capital among property owners.
Mavik CEO Vik Uppal stated that while headline default rates may not reflect it, there is a significant demand for capital, restructurings, and recapitalizations, creating a compelling investment opportunity. The firm has a track record of raising capital for previous funds, with VS1 securing $335 million and VS2 closing in 2025 with $685 million, exceeding its $515 million target.
The firm has also stepped in as an alternative lender, filling a gap left by traditional regional banks that have reduced lending due to high interest rates and stricter regulations. Mavik's past investments have included diverse projects such as a gilsonite mine and a large office-to-residential conversion in Washington, D.C. In January, the firm committed $96.7 million to a 525-unit conversion project by Post Brothers.
Mavik Capital currently manages over $2 billion in assets and has deployed approximately $3.75 billion across more than 125 investments since its inception. Many investors are actively pursuing distressed commercial real estate deals, driven by post-pandemic shifts in the office sector and financial pressures from elevated interest rates. This trend is highlighted by Starwood Capital Group's recent closure of its $10.2 billion Starwood Distressed Opportunity Fund XIII, which has already committed to $3 billion in transactions.