Private Equity investment fund

4 Benefits of adding a Real Estate Fund to Your Portfolio

Alternative investments make up an differing verticals of investment instruments, managed futures, real estate, commodities, hedge funds, private equity, along with a growing number of other types of (often exotic and mysterious) investments. Alternative investments have grown to be increasingly popular as well as a lot of press coverage in the recent past

Limestone exterior building

New Portfolio Company

We are pleased to announce a new portfolio company, Trebuchet Homes. Working with a local home builder for several years now, we wanted to take the knowledge and lessons we learned to create a new company, focused on the higher density luxury home building space. Trebuchet homes is part our larger vertical integration strategy to lower costs of building to our real estate fund investors. Creating Trebuchet Homes has been a long time coming, years ago had looked at a 26 home development deal, but ultimately passed on the offer. The lesson learned; pick your partners, battles and investors carefully. With this new company, we attempt to solve the problem home buyers have when they decide to move. They move for 3 main reasons, better quality homes, nicer neighborhoods, and larger space. By focusing on building architecturally significant town-homes and condominiums (infill) in established areas, we open ourselves to a wide audience, and expect to be a significant … Read more

LA skyline from Grif obs

Industrial Real Estate in 3 Trends

Industrial is going thru a big change right now, and tenants are demanding better space to stay competitive. Buildings and tenants are adopting new technology to increase efficiency. On the investment side, this is creating an environment of

Harmony_Gumery_Palais_Garnier

Concrete Bots and Coal

The world has been built from concrete, making it the most widely used building material, for centuries. Even today, roman cement is being studied and researched because of its tremendous ability to withstand time. In it’s simplest form, concrete consists of small particles of a hard material (known as aggregate) bonded together by a cement and water, but there’s a huge amount of chemistry involved in finding exactly the right combination of ingredients. The most common form of cement is known

Industrial-warehouse-robot

The Coming Industrial Robot Revolution

The opportunity to cut costs, increase efficiency in the warehouse and logistics sectors will be brought about by industrial robots, according to a new report published by a market intelligence firm, Tractica. The global market number of robots and related automation equipment is said to number 40,000. The industrial robot sector is expected to grow over

PE vs RE

4 Ways Private Equity is Better than Funds or REITs

Superior returns depend on 1 key ingredient. Structure.Private Equity (PE) has been returning higher yields, lower volatility, bettering Sharpe ratios across portfolios for years. For smart money managers, it’s their secret sauce. They use PE to balance their clients’ volatile equity portfolios. Pensions are placing more capital to private equity every year because of its

2 heads thinking about real estate

Looking Closer at Expert Risk

2016 is going to be financial chaos, oil crashing, Canadian peso, worst is yet to come, imminent war. The US fed raised the interest rate 0.25% and the world is coming undone. These are what the headlines lead you to believe. But look back to fall 2008, all news, all everyone was talking about was destruction of capital. But back in late fall to winter 2008 and Q1 2009, it was a epic time to buy. The vast majority of market participants are wrong most of the time. This is why people are able to make a return, they take it from them. Those people don’t listen to television and media experts. Financial people who want to become recognized as experts need soundbites. To get picked up and quoted by newspapers, television and other media outlets pre-experts need a loud, louder than others, opinion. Becoming an expert this way builds a brand, the expert becoming “that guy”. A great example outside finance expert is Don Cherry. When he speaks its interesting, unpredictable, always … Read more

deal by deal pitfalls

Six Pitfalls of Deal by Deal Real Estate Investments

One fund, one property, one deal. This is how the majority of real estate investments are made. Investors know the property, how much it costs and are able to see the income statement and balance sheet. While this may be the market norm and appears straight forward, it introduces unintended secondary reactions and hidden pitfalls not generally found in other real estate investment structures. Less Risk? By segregating investors into a single asset, the “upside” of this is that the investors know exactly what they are buying, but the knowns introduce more risk into the fund. The perceived safety is a myth is that investors perpetuate by applying home purchasing logic to commercial revenue generating assets. The thinking being “who would buy a house without seeing it first?”.  Meanwhile institutional investors and professional investors routinely and quietly go about getting the largest returns with the lowest risk because the structure and the perception framing is far different. These are the top Six Deal by Deal Pitfalls: 1. Misalignment to Market Realities Great real estate … Read more

Solar panel install commercial

Alberta’s New Renewable Energy Incentives a Template

All stick no carrot With the new carbon tax rained down upon the Alberta populous, the new NDP Notley government needs less stick and more carrot. The party needs to realize, that new taxes in a recession is not the way to go, especially when the impact is directly upon the general public. Alberta is terminally dependent on the incineration of coal for 55% of its energy needs and has no hard plan to replace this. If the new provincial government wants real energy diversity and change they need an incentive program. The new provincial climate change policy announcing a pledge, not legislation to eliminate coal-fired plants by 2030. This is too far away, not realistic, and is typical of parties that are seeking soundbites.  BUT with an actual incentive program, one whose duration is short at 4 years could get us 20% of the way along. A program like this is long enough to know if it’s working, short enough to be … Read more