Fundrise Spins Off RSE Capital As Stand-alone Company

Three months ago, real estate crowdfunding platform Fundrise plunged into the DC market by announcing $200M in annual investments in partnership with Insight Property Group.

Now, Fundrise, which launched five years ago and has grown rapidly, is spinning off its investment arm as a stand-alone company, RSE Capital.

The move allows Fundrise to focus on its E-REIT platform, which raises capital through crowdfunding. Fundrise will still provide the capital for RSE to invest in and develop properties, but a spokesperson says this move is designed to segregate the capital raising and capital providing functions.

Two of Fundrise's senior vice presidents, Latasha Edwards and King Davidson, will move to RSE to lead the 10-person team, based in DC.

"Launching RSE Capital as a standalone company will allow us to focus more resources on continuing to provide the most flexible, reliable, and competitively priced equity and debt solutions in the marketplace,” Fundrise CEO Ben Miller, above, said in a release.

RSE plans to target deals between $20M and $100M in total market cap. Just last month, along with Insight, it purchased two NoVa properties for $58M. RSE has similar partnerships in Washington state and Austin, TX.

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