Episode 124: Merchants Capital Closes $160M Tax Credit Equity Fund 31

Merchants Capital has closed on its Tax Credit Equity Fund 31, a $160 million multi-investor LIHTC equity fund backed by 10 institutional investors. The fund will inject equity into nine affordable housing properties, creating or preserving more than 1,400 affordable homes. For syndicators, developers, and LP investors, the closing is a concrete data point on the current state of institutional appetite for tax credit equity. Key Takeaways: Fund 31 closed at $160 million, making it a significant multi-investor vehicle in the current market. 10 institutional limited partners participated, signaling broad LP interest despite a challenging development environment. Equity will flow to nine affordable housing properties — implying an average of roughly $17–$18 million per asset. The fund is structured to create or preserve more than 1,400 affordable homes. The multi-investor fund format diversifies risk across a portfolio of deals, a structure increasingly favored by institutional LPs seeking LIHTC exposure without single-deal underwriting. Freshly closed funds carry deployment timelines — developers with near-term, shovel-ready deals are well-positioned to engage Merchants Capital now. The close reinforces that institutional LIHTC equity demand remains intact heading into the second half of 2026. The Merchants Capital Fund 31 close comes at a moment when the affordable housing industry is closely watching LP sentiment. Higher construction costs and prolonged interest rate pressure have complicated deal underwriting, yet this closing demonstrates that well-capitalized syndicators are still assembling large, diversified equity pools. Developers, co-syndicators, and lenders should treat this as a signal to engage active equity platforms early — capital with a deployment mandate moves fastest to sponsors who are ready to close. Subscribe to The Spring Street Brief for daily updates on affordable housing in America.