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S2 Capital seeks next chapter as it winds down its first apartment fund

'Throwing our hands up in the air and crying doesn't solve the issue,' CEO says
Pearce on the Lake, a 440-unit apartment complex in southeast Houston, is a property held in a troubled S2 Capital fund that is in the process of winding down. (CoStar)
Pearce on the Lake, a 440-unit apartment complex in southeast Houston, is a property held in a troubled S2 Capital fund that is in the process of winding down. (CoStar)

Ever since S2 Capital sent investors a confidential letter in early July formalizing the wind-down of its first multifamily fund, founder and CEO Scott Everett has been spending his days on 20-minute calls explaining to investors why they won't see a return on their capital.

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