REAL ESTATE

As an asset class, real estate provides investors with meaningful exposure outside of traditional equity and fixed income markets.  We believe that diversification among multiple asset classes is the best way to protect investors from external macroeconomic risk.  In this regard, real estate is an effective way of reducing a portfolio’s likelihood of being adversely effected by wild market swings and price movements.

INFRASTRUCTURE

Large public infrastructure projects generally include energy supply, communication networks, public transport, power generation, and environmental services.  The continuing demand and privatization in the sector will continue to spur growth and create enduring value for the general public and investors.  As political institutions stimulate economic competition and lower overall budget deficits, they are increasingly financing and operating large capital intensive projects with efficient and experienced private teams.

LIFE SCIENCES

Global health care expenditures currently exceed $7.6 trillion dollars.  Brand name and generic pharmaceuticals, medical device/service providers, and biotech companies make up the majority of that figure.  Due to competitive and regulatory pressures there has been a shift in the life science industry from a predominant focus on innovation and organic growth to increasing operational efficiency and prudent capital allocation.  Valuable opportunities exist for low-cost providers, value-added acquisitions, and underwriters of secured credit to cash-flow generative firms.

VENTURE CAPITAL

Venture capitalists seek to provide equity and/or debt financing to early-stage companies and play an essential role in new-business formation.  We work with investors and Private Equity Funds in the industry who operate in B&C stage financing.  Investing in these latter stages helps to reduce the business risk associated with early stage companies who generate little cash.  Initial public offerings and strategic sales provide highly liquid exit options.  Areas of continuing interest include: consumer internet and media, enterprise infrastructure, communications, mobile, and software services.

AUTOMOTIVE

The U.S. automotive dealer space represents the largest single retail segment in the U.S. economy with over $1 trillion in sales.  While the automotive sector is generally a highly profitable business, the dealership franchises have also proved to be very resilient in bearish of markets.  Moreover, state-legislation protecting dealer rights and a highly selective franchise approval process continue to protect industry participants from disruptive entrants.  These barriers to entry coupled with scalability, predictability, and high returns on equity, are but a few tenants that make the industry attractive from our perspective.