LAKEWOOD, Colo.–(BUSINESS WIRE)–Happy Camper Capital, a Colorado based real estate investment firm, has unveiled its newest fund, targeted at $25 million, to purchase from six to ten additional Campgrounds, RV Parks, and Marinas. The new Fund will be Happy Camper’s fifth fund, and reflects the continued expansion of private equity funds into the booming outdoor hospitality industry, a niche generally known for “mom & pop” operators who’ve seldom operated more than one site.
The new fund reflects the fact that since 2020, RV travel has boomed nationwide, with record-setting new camping household numbers increasing by 4.7% in 2020 and 8.9% in 2021 (Kampgrounds of America, 2022). The extraordinary growth has been powered by many factors, including the urge to travel since the covid lockdown, by millennials, who have embraced the opportunity to work from anywhere, and by millions of retired baby boomers nationwide, who find the RV life flexible and affordable.
Not surprisingly, the outdoor hospitality growth has also attracted significantly increased interest from private equity investors. Happy Camper’s co-founder, Adam Lendi stated, “Investors in our existing funds have been drawn not only by the substantial cash flows, but the opportunity to increase revenues at existing facilities by adding new amenities and upgrades, while also benefiting from traditional real estate tax benefits such as accelerated depreciation.”
Lendi continued, “Many real estate investors were already seeking the next big asset class as returns in multifamily apartments, self-storage, and mobile home park spaces were shrinking and fewer good deals were to be found.”
Happy Camper Capital first four funds purchased single unit facilities, all in the Midwest. After listening to feedback from our investors, Happy Camper Capital co-founder Justin Hoggatt added, “Our investors liked the idea of a large diversified fund that will enable us to acquire facilities in different geographic markets. Diversification not only lowers the overall risk of a poorly performing property or the effects of a natural disaster, but also enables the fund to even out cash distributions throughout the year, by balancing returns from both summer and winter RV locations.”