The Dallas-based real estate investor and development firm will look to add new funds in the future.

Prescott Group announced the closing of its first real estate private equity fund.

The Prescott Strategies Fund I closed with a total commitment of $63.4 million. The Fund will invest in both real estate-related debt and equity positions. It will also focus on distressed and value add investments.

Prescott Group CEO Talks New Fund

Jud Pankey, Founder and CEO of Prescott Group, commented on the new fund.

“The closing of Prescott Strategies Fund I marks the first of what the firm hopes to be a succession of follow-on funds,” Pankey said. “As a prudent fiduciary of capital, we are seeking opportunities to strategically allocate the remaining committed capital into investments that suit our strategy and deliver superior risk-adjusted returns to our limited partners.”

The Dallas based firm was founded in 1996 by current CEO Jud Pankey and President Vance Detwiler. The two have seen the firm negotiate several real estate cycles now including the credit crisis and recession of 2007-2009. The firm originally focused on investing in commercial real estate properties on behalf of large institutional investors. Further, the company founded Prescott Advisors after the addition of Senior Managing Director Richie Butler.

The Prescott Group also owns Dyck O’Neal, a national purchaser, asset manager and servicer of real estate loans with more than $2.4 billion of assets under management. Finally, at closing, the new fund had invested 40% of its capital in 12 investments.