Covenant Capital Group has raised more than $1.1 billion from its latest flagship value fund, combined with its affordable housing sidecar. The close marks the highest amount fetched in its 25-year existence.

Covenant Apartment Fund XII, L.P received “strong backing” from new and existing institutional partners, according to Covenant.

The fund portion will focus on investing in multifamily properties that are underperforming but have potential. That’s where further investments will be made, which include implementing operational upgrades, asset management and renovations.

“Investor demand for Fund XII highlights the confidence in Covenant’s ability to execute in all market cycles,” Dan Barber, managing director and chief financial officer, said in a statement.

“With more than two decades of experience in value‑add multifamily and a deep bench of operational talent, we believe we are well‑positioned to acquire assets that require hands‑on repositioning and active management—an area where our platform has excelled.”

In total, Covenant Capital operates more than 22,000 multifamily units and has over $2.4 billion in assets under management.

While multifamily has struggled overall to gain footing in recent years, January marked the first halt in the declinein the occupancy rate in six months, according to a recent report from RealPage. Rents, meanwhile, rose 0.2 percent month-over-month but dipped 0.4 percent year-over-year.