MLG has a pretty strong reputation, a pretty deep bench, a lot of experience, a very good track record, and a low minimum to invest in a fund ($50k). They typically have about 88-95% multifamily, but also sometimes include an industrial or a flex property they like. I don't fault them for diversifying a bit. They have enough heads in the game to not commit any significant unforced errors in their non-MF acquisitions. It's a very big outfit, and they do use a lot of JV relationships--FWIW.
I gave them 4/5 stars for "strength of leadership" because so far two of my investor relations contacts (the ones assigned to me) have left the company in like three years. Not a great sign.
I did put a fair amount of money with them starting in 2020 and so far they are paying more or less as expected...
The second reason for a 4-star review is that the returns for one of the funds I am in is not going fantastically. There is still time, and in fact that tuned down the returns and are recycling capital from sales as a way to boost final profits for the investors. Reasons include too much Class C+/B- representation in the fund, and buying at the top of the market. They have used a bit of floating rate debt + rate caps as well. However, obviously a chunk of the blame is simply the way the whole market has been in the past few years.
I have hope of a 10% IRR in the weaker fund, and maybe 14% for the better fund.
They do seem chastened by the issues they face with the weaker of the two fund, and have dedicated themselves to fixed rate debt and less "workforce housing" as they call it. I will add that they are not one of these "markety", slick young buck-led operators who concentrated on the Sun Belt using variable rate financing--like one or two others I have invested with. So no capital calls, no paused distributions. Have I seen falling NAVs since inception? In one of the funds yes for sure, in the other they are about even.
Overall, they are a solid outfit from what I can tell. Probably have 1,000 employees and four main offices.
I am not sure I love Fund VII--they literally don't post an IRR expectation and the hold time can be as long as 12 years. I believe the not posting an IRR prediction has something to do with the fact that they are somewhat SEC-regulated now--I didn't follow that whole thing closely. But I would look into that if I were going to put money on Fund VII.
If I eventually get out with a combined 12.5% IRR, I would probably want to change my rating to 5/5 stars.
