Governing Principals
Trebuchet Capital Partners has created a family of private equity real estate funds centered on real estate investment.
First
Investor protection, balanced returns. Public stocks, bonds, mutual funds are at the mercy of the market. In many cases stocks or traded funds are highly correlated to the overall market, or are “over-amplified” to the downside. By creating the right foundation and structure, for the investment thesis,
we de-risk the investment in a way publicly traded stocks cannot.
Second
Technological Innovation. Data is becoming more important to make investment decisions and forecasts. Throughout the investment life-cycle we use proprietary market research to uncover opportunities others miss.
Third
A social responsibility component. Not only are we leaders in this field, but the philanthropy we do helps our funds down the line.
Our private charity, the Trebuchet Foundation receives 10% of all management fees. This earned income, goes towards helping small industrial and manufacturing companies become more competitive, and create more jobs.
Investment Vehicles
We are able to match investment mandates with conventional and novel structures.
All data as at March 11, 2019.
Fund | Fund Size (unlevered) | Investment Strategy | Target Acquisition Investment Size |
---|---|---|---|
Core Closed Funds USA Roundtable Fund (series I-III) (Institutional) | $35m to $135m | Assemble a portfolio of stabilized, industrial real estate assets in primary geographies. Core to core plus strategy with value adds and limited re-positioning of Class C industrial properties. | $5m to $85m |
Closed Opportunistic Funds Pomerium Fund (series I-II) (Institutional) | $30m to $150m | Assemble a portfolio or pieces of land, for purpose of building and divestment of light industrial/warehouse/distribution and or condominiums. Other strategies include compilation of originated mortgage/debt notes. | $30m to $80m |
Separate Account (Min. $2m) | Varies | Investment Strategy & Thesis varies by account | $5m $100m |
Trifecta Fund (Retail) | Open | Non Geographically based fund concentrated on building in the luxury residential sector. | Varies |
Our Investment Process
Research:
Macro/micro research & analysis followed by stringent fund offering structure to align our 3 main criteria;
“Does the investment have the ability to outperform?”
“Is it differentiated & relevant in the marketplace?”
“Does it solve a problem for the LPs and for the (potential) revenue generators of the fund?”.
Screen:
Potential investments are based off the investment thesis. Records and data will be collected by our street and office teams, to gain insight to potential acquisitions. Attempts are made via online, area marketing, radio, and direct to reach out to potential sellers. Special websites, CRMs and call centers are engaged. Existing relationships and new contacts are sought out by the origination team. Majority of assets are screened out based on location/asset type/age/quality. Remaining assets are assessed on cap rate and price, numbers are entered into a financial model. This process takes about 30 seconds. If value is shown, further information such as rent rolls, tax, incorporation information, debt, financials is obtained. Price discussions occur and financial model is updated. Upside or hidden value is analysed. Assessment is made to go or abandon deal. Level 2 screen is outsourced for outstanding liability, tax, ownership confirmation, environmental issues. Site visits are conducted, underwriters are approached, model updated. If valuation is in line, a draft property summary board is informally pitched, if go, building study/phase 1 environmental conducted. If no issues, then a no-shop lockup agreement is formed. Network of underwriters approached with package. Mindful of transaction costs.
Invest:
Based on existing LPA criteria, capital is deployed after LP investment committee approves. Typical, well documented building close procedure.
Manage & Monitor:
Assets are documented and budgets matched from investment phase are implemented, research and screening phases are ongoing to monitor market fundamentals. Any value adds are budgeted/implemented. Outsourced credit monitoring. Lease renewals are staggered. We actively tour and are hands on managers, speaking with our tenants often. Leasing is outsourced.
Exit:
Ongoing research is used to quantify best divestment of assets congruent with fund liquidation data. Last minute yield enhancements to maximize value are implemented. Transaction costs kept to a minimum.