News
A private investment group with a strategy to create a new blueprint for affordable housing investments has reported impressive growth.
By: Brad Randall, Broadband Communities
A strategy with a focus on addressing the lack of affordable housing has paid off for The Vistria Group, a private investment firm known more commonly as Vistria.
As part of the strategy, Vistria announced last month they had acquired more than $2.5 billion in assets under management, or AUM.
This past March marked two years since Vistria launched their dedicated affordable housing strategy, the investment firm’s March release stated.
In the years since, Vistria has accumulated more than 7,000 units, of which the firm says 80 percent are affordable.
Included in that portfolio are over 2,000 units that were formerly at market rate, according to Vistria.
Margaret Anadu, a senior partner with the firm, said the milestone means “institutional investors are recognizing what we’ve long known.”
“High-quality affordable and workforce housing isn’t just essential,” Anadu remarked in comments included with Vistria’s release. “It’s one of the most durable and scalable asset classes in real estate.”
‘The opportunity is only getting stronger’
Anadu also pointed to the existing challenges within the private real estate fundraising environment, which have been prevalent since 2012, according to Anadu.
The success of Vistria’s strategy, despite market hurdles, “proves that capital is flowing to this dedicated strategy, and the opportunity is only getting stronger,” Anadu said.
Additionally, Anadu said Vistria isn’t just participating in the affordable housing market, they’re defining it.
Also offering comments in Vistria’s announcement was Martin Nesbitt, a co-CEO and senior partner at Vistria.
“Exceeding $2.5 billion in AUM for our housing strategy in two years is remarkable by any industry standard,” Nesbitt said. ““But what truly sets us apart is how we approach real estate in concert with our work across healthcare, knowledge & learning solutions, and financial services—the fundamental sectors that shape communities and society.”
The company’s investments have spanned across six states and Washington D.C., Vistria’s announcement explained.
New York, Texas, California, Georgia, Michigan, and Illinois have all been sites of recent Vistria investments “ensuring long-term affordability through newly created partnerships.”
“Vistria is raising dedicated permanent capital, allowing investors to tap into the long-term, resilient value of high-quality housing that remains accessible to the majority of American families,” Vistria’s announcement stated. “The strategy has already attracted blue-chip investors, including public pensions, global investment banks and asset managers, leading U.S. foundations, insurance companies, and some of the largest family offices in the U.S. and Europe.”
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