Portfolio Evolution and Modeling | Capital Formation and Deployment Strategy | Capital Structuring | Capability/Gap Analysis | Enterprise Modeling
The Challenge
A diversified real estate investor and operator approached RCLCO to help it transition its capital structure away from deal-by-deal ventures. The company’s leadership asked for our support in creating a plan to create long-term value through recurring revenue streams and afford the organization greater discretion while minimizing the cultural impact.
Solution
RCLCO developed a pathway for the company that involved a gradual expansion of capital raising efforts across several different investment vehicles. We identified potential partner characteristics and created terms & fee structures for future raises. In line with the clients objectives, our strategy focused on sourcing aligned long-term capital partners that will allow for maximal discretion. Our plan identified organizational gaps expected by institutional capital and we helped the company professionalize key roles including asset management.
Impact
The client successfully launched a separately managed account with a culturally aligned capital partner. Since then, the company has raised an over-subscribed commingled vehicle in-line with our recommendations.