WREAA Fund II, the University of Wisconsin–Madison’s student-led real estate investment fund, has continued to build momentum throughout 2025 — successfully deploying $2.67 million of equity across multiple commercial real estate investments nationwide. With $1.47 million remaining to deploy, the fund remains on track to invest its full $4.14 million of investable capital by December 2025.
Managed by 27 graduate students in the Wisconsin School of Business’s Real Estate Private Equity (REPE) Track, WREAA Fund II represents a distinctive hands-on learning experience where students source, underwrite, and execute real-world transactions under the guidance of faculty director Paul Melkus. The fund’s capital, raised primarily from alumni and outside investors, is structured to deliver competitive real returns while advancing the Wisconsin real estate program’s commitment to experiential education.
Performance and Investment Highlights
As of Q3 2025, the fund’s portfolio projects a 10.91% levered IRR and a 1.59x equity multiple, both net of fees. These metrics reflect disciplined underwriting, conservative leverage, and thoughtful diversification across markets and asset types.
Since inception, the fund has invested in seven states across the U.S., targeting a mix of multifamily, senior housing, and industrial assets consistent with its core-plus and value-add strategy. Each investment was selected for its ability to balance risk-adjusted returns with market resilience and demographic tailwinds — particularly in secondary and tertiary markets where migration trends and housing demand continue to strengthen.
Investment Strategy and Criteria
Overall, WREAA Fund II targets 12–18% levered IRR returns (net of fees) with a minimum 1.5x equity multiple. The fund typically invests $250,000–$700,000 per transaction, representing approximately 5–15% of total project equity.
The team emphasizes sponsor alignment, operational excellence, and transparency, evaluating each joint venture partner’s track record, financial strength, and co-investment commitment. In keeping with the fund’s investment philosophy, WREAA Fund II avoids projects with entitlement or development risk, instead focusing on stabilized or transitional assets with clear value-creation potential.
Educational Mission and Alumni Partnership
Beyond financial returns, WREAA Fund II serves as a living classroom, bridging academic theory and real-world practice. Students engage directly with deal sponsors, lenders, and legal partners — gaining firsthand experience in sourcing, underwriting, due diligence, and investment committee presentation.
“This fund has provided the students the opportunity to see all the ways their course work gets utilized by investing real money in real assets and how the entire Private Equity ecosystem works through an action-learning program,” Paul Melkus describes. “Our goal is to equip students with the necessary skills to operate at a high level in their first postgraduate roles and throughout their careers. Our investor group receives high-quality reporting, a fiduciary approach, risk management, and strong asset management.”
Call for Opportunities
With approximately $1.4 million remaining to invest before the end of the year, WREAA Fund II continues to seek core-plus and value-add equity opportunities nationwide, particularly in multifamily, industrial, and senior housing sectors.
Prospective sponsors are encouraged to submit opportunities to wsbpe.dealflow@wsb.wisc.edu
About WREAA Fund II
WREAA Fund II is part of the Wisconsin School of Business Real Estate Private Equity Track, a graduate-level applied investment program supported by the Wisconsin Real Estate Alumni Association (WREAA). Through alumni-backed capital and professional mentorship, students gain direct exposure to investment decision-making while generating competitive market returns.