Investing with Big River
What is Real Estate Private Equity Fund Investment?
A real estate private equity fund is traditionally a pool of capital organized by a Fund Manager and then invested by the Fund Manager. A typical scenario is as follows.
First, equity capital commitments are made by a group of members. The Fund Manager calls in a portion of the capital when the fund closes, and then again at various times after the fund has closed as the capital is needed to purchase assets. After the assets are purchased, the Fund Manager manages the assets to maximize investment returns. At the end of the prescribed investment period, the Fund Manager sells all of the fund assets, pays off any debts, and returns capital to fund members on a pro rata basis. Compensation to the Fund Manager typically takes two forms: through annual management fees and through participation in the profits of the fund, usually after some minimum preferred return to the passive members of the fund are met.
Why Invest In a Fund?
According to Morgan Stanley, private equity funds are still the most attractive format for gaining exposure to private real estate, and are superior to investing in a single building syndication. Funds are focused and built to deliver the traditional benefits of real estate ownership (tax sheltered income, low-correlation to other assets, and a hedge against inflation) while benefitting the investor with increased diversification.
Why Invest With Big River?
At Big River, we've developed a disciplined and focused investment strategy, and we have a deep understanding of the assets we purchase. Our focus is on value-oriented investing in markets where we have experience and expertise. The benefits of investing with Big River include:
- Our CEO, Ryan Mallery, is directly involved in all material contract negotiations such as purchase agreements, debt and leases.
- We establish a strong alignment of interest with our investors by investing material amounts of our own wealth alongside our partners.
- We have a proven and repeatable track record of producing quality risk adjusted returns from real estate.
- Judicious research, data collection, and analysis of each prospective opportunity informs every part of our decision making process.
- We provide faster execution than real estate managers who require partner or investor approval for each acquisition.
- Because we're a boutique firm, our clients enjoy direct access to our leadership, ensuring high quality and efficient service.
- Low overhead allows us to stay nimble and opportunistic in selecting investments.
- We have an integrated property management platform which is deployed, when appropriate, onto fund assets. This typically translates into margin pick-up and higher net returns.
- Our management fees are very competitive as part of our efforts to grow and gain market share.
- We are tax sensitive and tax efficient.