Private Equity Real Estate Vertical Integration

Rome was not built in a day, but they were laying bricks every hour

  -John Heywood

Erik Bos

Erik Bos

Managing Partner

The search for yield and the drive to return more capital to investors has become a science and an art. We believe that the best way to join these pursuits is to acquire, or build businesses that are accretive to Trebuchet Capital Partners funds. Being students of history and of other companies we search for what works, what hasn’t and why.

Conglomerates failed in the 1970’s primarily because failing or grossly underperforming business units were being propped up by more successful ones. CEO pet project companies were common and fiefdoms by middle management protected these non accretive companies.

We believe there is a better way to integrate, create a scale of economy and sell necessary materials & services into our funds. For example Tower Cement, was created to lower the cost of cementitious building materials. Tower Cement will be the preferred vendor to any building funds, selling at cost, lowering building costs, raising returns. All are transparent transactions and are bided out just like non-related vendors for no conflicts of interest. With the addition of a general contracting unit owned and operated by us, and we can greatly lower building costs, and control quality in a way our Private Equity Real Estate peers cannot.

For these portfolio companies, we structure them with principals capital and debt we do not generally accept outside investors, keeping us focused on long term outlooks. Structured in this way these business units will have the benefit of reoccurring revenue stream, while building outside revenue steams, lower the labor and material cost to our funds even more.

Private Equity Real Estate Improvements

Building is one of the most inefficient industry sectors. It has the lowest IT spend of any sector and is the poster child of inefficacy and big egos. We would like to transform and lead this cottage industry of fragmented home builders. The majority of builders are first generation, have little spend or knowledge of manufacturing best practices and outsource all of their trades.

Our Companies and Our Outlook

Trebuchet currently has a cement company Tower Cement in R&D mode to date. We are actively looking to acquire a sand quarry or cement company in South Florida. We believe that we are adequately funded to start a new cement company in this region should there be no attractive targets.

tower cement home page, a trebuchet portfolio company

Tower Cement

Tower Cement is interesting as it can be used as an entry for a variety of sectors. Construction, both commercial and residential as well as defense sectors.

Other areas of advancement

We are actively setting up a general contractor company to hold our builds to better transparency, and lower the cost of building. Once tower cement is producing we will build a masonry service company. In selling our residential real estate we are taking lessons learned in online marketing from another one of our companies, The Mas Clinic. With the pandemic, buyers have changed habits, from physically visiting properties to virtual tours. Just as it was hard to comprehend clothes buying online, home buyers are signing virtual contact and sale agreements. With every build we are seeking individual micro branding sites, virtual tours, and a comprehensive sales funnel that will allow us to lower the costs of selling.

HealthCare

Health is one of the most important factors in quality of life, as well as in potential. Without it or lack of consistent health is detrimental to long term goals such as retirement. Just like how we look at entering private equity real estate investments we saw an opportunity to enter into private health care.

The Mas Clinic hompage

The Mas Clinic

The Mas Clinic allowed us to explore a thesis and build an extensive waitlist, which we are now seeking a practitioner to partner with. From this online exercise we were able to achieve top 5 local rankings in this field, besting all other existing market participants. This was achieved on a small budget using the latest technologies and practices in online marketing. This has been an outstanding success and we expect these lessons to be applied to our future online businesses.

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Why Trebuchet?

The Trebuchet resonated strongly with us for our private equity real estate firm. Unlike a catapult, the Trebuchet uses a sophisticated mechanism using gravity to propel projectiles. The Trebuchet, a siege weapon that revolutionized warfare, was able to propel a variety of projectiles weighing a ton or more.

Societies and kingdoms that stood for hundreds of years, the trebuchet was able to destroy those castle walls in a single night. If the invaders wanted the castle intact, they could use the trebuchet as a biological warfare weapon, projecting diseased cattle inside of the castle walls. The word “engineering” is closely related to The Trebuchet. In Latin and the European vernaculars, a common term for trebuchet was “engine”. What we like is that the Trebuchet was an agent of change, when they came to town, it was negotiate or be destroyed.

To learn more about the Trebuchet and its place in history

Trebuchet Capital Partners