Courting Capital

Securing an Institutional Partnership Can Be A Lot Like Dating. To Find the Right Match, You've Got to Show Your Company's Best Assets and Highlight the Benefits of the Deal

6 MIN READ
Jim Hurley, Portfolio Manager, CalSTRS

Jim Hurley, Portfolio Manager, CalSTRS

Five Things Institutional Investors Want in Presentations 1) A Track Record: If you completed developments in a location or a niche that an institutional investor wants, talk about it. Focus on what the project was, what the challenges were, and how you overcame them.

2) A Story: When courting institutional capital for a specific project, focus on the property’s potential. For instance, if the property is a rehab surrounded by five new apartment communities, tell institutions how a rehab can make it competitive.

3) Co-Investment: Institutions like it when their partners have a stake in developments. So whether it’s 10 percent or 40 percent, be prepared to put up money.

4) Strong Management: A strong, experienced management team can go a long way to allay an institution’s concerns about partnering with a developer. Emphasize your management team’s experience working with institutional investors or working in the product niche.

5) Pictures: Pictures tell a thousand words. When it comes to showing multifamily ventures, especially rehabs, pictures can show how you transformed a property.

About the Author

Les Shaver

Les Shaver is a former deputy editor for the residential construction group. He has more than a decade's experience covering multifamily and single-family housing.

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