For Sale: A New Home Built by Your Local Private Equity Firm

  • Encore raising $400 million for entry-level, senior housing
  • PE funds buy homes to rent but don’t often build them to sell
Photographer: Ty Wright/Bloomberg
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Private equity wants to build your home.

Encore Capital Management is talking with institutional investors to raise a new fund to buy land and build homes for sale, focusing on affordable, entry-level and senior housing, according to people with knowledge of the matter. The asset manager and real estate developer is seeking to raise $400 million, said the people, who asked not to be named because the talks are private.