Co-Investment Program
The JV Equity Partner Program offers larger individual and fund investors a broad range of benefits, including:
- Improved access to deal flow: the opportunity to invest with a variety of new managers (sponsors), including operators, developers and other firms that may not have traditionally accessed capital from fund investors
- Portfolio Diversification: the opportunity to invest with a variety of experienced operators, assets, and geographies for a truly diversified portfolio
- Mitigation of risks: the unique opportunity to be invested across multiple platforms
- Favorable risk-adjusted returns: the potential to earn increased compensation over the real estate return
- Opportunity to create proprietary relationships: the opportunity to invest in one or more future investments of pipeline opportunities
- More efficient allocation of capital: the opportunity to develop business relationships with New Managers, which has the potential to eventually reduce or eliminate fees and promotes paid to intermediaries
- Active Decision Making Participation: As a joint venture investor you reserve the right to have an active say in the bigger picture decisions that affect an investment through the real estate market cycle.
Controls & Safe Guards
Integrity and transparency; Our real estate investments are governed by stringent investment safeguards, including frequently audited financial statements to ensure accuracy in reporting.
Risk Mitigation & Defined Expectations; We implement a private placement memorandum that sets out the investment’s distribution policy, prohibits investment in certain assets or activities, defines borrowing limitations and limits recourse of its lenders and major service providers to the assets of the group’s investment—thereby protecting our investors from liability. Because many investors have limited resources to source, underwrite, structure, monitor new relationships or pursue various strategies, we help investors mitigate risk and enhance their return potential over time.
Access & Strategy
The Saker Capital Partners investment platform offers capital partners access to acquisition and operational expertise that generate superior risk-adjusted returns through experienced, time-tested real estate operators who are among the best in their niche market.
As a talent-driven program, SCP only partners and invest with operating company sponsors that demonstrate the following characteristics:
- Unique access to deal flow
- Deep and experienced management teams
- Proven historical track records of investment success
- Scalable investment strategies and operating platforms
- Potential to outperform established investment management firms and industry benchmarks
- Commitment to developing long-term relationships with our investors
- A highly entrepreneurial culture and mindset that allows us capitalize on opportunities
Our Investment Strategies
Private equity real estate funds generally follow one of three strategies when making investments. Depending on the investor’s goals, each of our investments will follow one of these strategies:
- Core Plus: A moderate risk/moderate return strategy. The fund will generally invest in core properties however some of these properties will require some form of enhancement or value-added element.
- Value-Added: A medium-to-high risk/medium-to-high return strategy. It will involve buying a property, improving it in some way and selling it at an opportune time for a gain. Properties are considered value-added when they exhibit management or operational problems, require physical improvement, and/or suffer from capital constraints.
- Opportunistic: A high risk/ high return strategy. The properties will require a high degree of enhancement. This strategy may also involve investments in development, raw land, and niche property sectors. Investments are tactical.
The Opportunity
Real Estate Investment opportunities in the decade ahead of us may be the best we see for the next few decades.
Many banks and other real estate investors in the United States are currently facing a credit crisis that will require them to liquidate substantial real estate holdings over the next three years in a cleansing of their portfolios. What began as liquidity and confidence crisis in 2007, manifesting in the failure of some of the large insurance companies and investment banks in 2008, will continue as a portfolio cleansing that we believe will last at least until 2015 when most of the outstanding commercial real estate debt matures.
SCP was formed with the expressed purpose to seek to capitalize on the fundamental dislocation in the real estate capital markets and to match private investor’s capital with experienced niche real estate operating companies so that all involved will benefit from these pooled resources.
SCP provides our investors with the benefits of real estate ownership, including tax preferred cash flow, long-term capital appreciation and portfolio diversification without the burden of direct property management responsibility.
When you invest within private real estate syndication, you are pooling your capital with other qualified accredited investor partners for the purpose of investing in larger and more lucrative real estate projects. We call this “Group Investment”, also known as syndication. This affords the individual investor an opportunity to participate with an organized group of like-minded and sophisticated Investor Partners in the ownership of a revenue generating property. This provides the potential to achieve higher profits through economies of scale and diversification with lower volatility than the average equity investment.
Unlike a REIT, our private real estate fund offers portfolio diversification because you own an actual piece of each real estate asset, and your return is not correlated with the stock and bonds market nor the overall financial health of any one stock traded company.
The JV Equity Partner Program offers our co-investor partners a broad range of benefits, including:
- Power of Pooled Funds: Provides access for individuals and family offices to participate in opportunities typically only available for larger institutional investors
- Portfolio Diversification: the opportunity to invest with a variety of experienced operators, assets, and geographies for a truly diversified portfolio. Private real estate investments are not correlated with stocks and bond investments adding an extra layer of diversification in ones portfolio of investments.
- Improved access to deal flow: Our operational partners have ongoing deal access from banks, brokers, and owners that have been developed over several decades
- Mitigation of risks: Extensive Due Diligence & Research By Expert Operators
- Expertise & Oversight: Acquisition and operational expertise from the country’s top real estate operators that co-invest and have aligned incentives to achieve attractive returns
- Favorable risk-adjusted returns: The potential to earn increased compensation over the real estate return, and a potential hedge against inflation
- Opportunity to create proprietary relationships: The opportunity to invest in one or more future investments of pipeline opportunities
- More efficient allocation of capital: The opportunity to leverage multiple platforms, strategies, and operational expertise from the best-of-breed operators
- Access & Positive Leverage: Access to co-investment of private capital funds and institutional sources only accessible by seasoned operators
Sourcing and Execution: negotiated terms with investment partners that deliver transparency, strong governance and alignment of interests. Rigorous underwriting process and due diligence performed on our investment partners and the underlying assets of the investment.
Structuring: Islamic and cross-border investment structuring, working together with some of the most reputable Islamic scholars, as well as legal, tax and advisory firms.
Portfolio Management: management of investments to execute well-defined post-acquisition strategies with strong value orientation.
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