Investment firm Mavik Capital Management is looking to raise capital for a new distress fund.

The New York-based firm seeks to raise $1B to acquire distressed commercial real estate assets, Bloomberg reported. The money will go into a new fund called VS3 and will be invested in a range of assets, including hard assets and commercial mortgage-backed securities.

“While stress doesn’t always appear in headline default rates, beneath the surface there is a significant need for capital, restructurings and recapitalizations,” Mavik CEO Vik Uppal told Bloomberg. “That dislocation is creating what we believe is an extremely compelling opportunity set.”

The investment firm has raised money for two prior funds. VS1 drew $335M in commitments with support from public pensions, family offices and Mavik employees. The second fund closed in 2025, raising $685M and exceeding its $515M target.

The firm has also found opportunities to step in as an alternative lender, as traditional regional players have pulled back from the space due to high interest rates and stricter regulations.

Mavik's other funds targeted the same kinds of distressed assets as well as other projects, including a gilsonite mine and Washington, D.C.'s largest office-to-residential conversion. In January, the firm deployed $96.7M as part of a financing package for a 525-unit conversion project from Post Brothers.

Mavik has more than $2B in assets under management. The company has deployed roughly $3.75B since its inception and realized more than 125 investments, according to its website.

Many investors are seeking distressed commercial real estate deals as the market has suffered from post-pandemic shifts in the office sector and financial stress resulting from elevated interest rates.

Last month, Starwood Capital Group closed on a $10.2B opportunistic real estate fund, Starwood Distressed Opportunity Fund XIII. The fund has already closed or committed to 20 transactions totaling $3B of equity.