Powered by Akras Capital, SCG rises to the unique needs of High Net Worth Investors
As a High Net Worth Investor, our team at Akras knows that you may not have the same needs as other investors. Your goals vary, along with return profiles, risk appetites and liquidity needs. You may have more complex aims related to wealth preservation, growth and tax liability mitigation. Furthermore, your desired involvement in a deal can range on the spectrum of passive to active and include a mix of debt and equity financing capabilities.
In order to be of service to you and your investment goals, we created the Strategic Capital Group
The Strategic Capital Group is a small and invite-only branch of Akras’s investor network. It consists of a small group of carefully-selected, experienced, high net worth investors with capital deployment needs starting at $500K per deal*. They are provided with opportunities to work directly with our acquisition and underwriting team to curate capital deployment. Based on your goals, we’ll hand select assets and customize underwriting to meet specific investment objectives.
If you are an accredited, experienced, high net worth individual, with capital deployment needs ranging from $500K to $10M per deal, please connect with Akras Founder Charles Stevenson. We’ll discuss your needs and how we can support your investment strategy.
*Initial investment can be lowered to accommodate investors looking to build a relationship
In all of our real estate investment deals, we commit to aligning our interests with our investors. We are motivated to preserve and grow your capital and build a life-long relationship. Simply stated, Akras Capital and its partners don’t get paid until our investors have been paid first, incentivizing us to achieve our business plan targets and satisfy our investors, so they return time and again. Additionally, we personally co-invest in all of our deals with our own capital, demonstrating our belief and confidence in them.
But it’s not just about the investors and the partners. There are many stakeholders in our business, and we strive to take care of them all. This includes the people that rent our units, the contractors who renovate them and the professionals who help us find the properties. It’s a lot to balance, but our upbringing and commitment to long term relationships and doing the right make it second nature.
We Preserve Your Capital In Three Ways
1. Careful Market and Sub-Market Selection: Our approach is data-driven and location is critical in our investment model. We only acquire multifamily apartment buildings in strong, Inland Cities with growing populations and diverse economies. Further, we buy properties in desirable “B Class” neighborhoods that maintain and increase in value and rental demand in all economic market cycles.
2. Expert and Conservative Underwriting: Our analysis and underwriting team of Chartered Financial Analysts spent their careers on Wall Street, underwriting million and billion dollar institutional deals. They bring this discipline and conservatism to Akras’s property acquisition efforts. We only invest in properties that have significant equity built in immediately and realized at close, protecting against economic downturn. We utilize conservative revenue assumptions and liberal cost assumptions in our models, ensuring there is adequate cash flow and debt coverage. Additionally, we leverage long term debt financing as an added safeguard to economic downturn.
3. Professional Management and Business Plan Execution: Our team has decades of experience building and growing businesses with complex service offerings. We have strong ethics, discipline and systems, which translate into consistency, confidence and performance for our stakeholders. We are also aware of our limitations, and hire experts in construction, property and asset management to ensure our properties and tenants are well cared for.
We Grow Your Capital in Three Ways
1. Value Add Properties With Forceable Appreciation. We acquire multifamily apartment buildings that we can predictably grow in value for later acquisition by other investment teams. We remodel and improve our properties from the inside out, increasing rental demand and value in the market. We also bring efficiencies to asset and property management that ultimately decrease expense ratios. By approaching the financial performance of the asset from both sides of the P&L, we effectively manage up the Net Operating Income and increase asset valuation.
2. Cash Flow and Rental Revenue Upside: The properties we acquire cash flow from day 1 of ownership. They also have room to increase rents after the units have been remodeled and stabilized.
3. Market Appreciation: While this is more of a bonus, and not necessary for us to grow capital, often times the markets we buy in are experiencing appreciation from their economic growth, which helps to increase property value.
We Bring Institutional Diligence to Real Estate Investment
All of this said, it takes a very special property to meet the qualitative criteria listed above. We bring our background in institutional investment management into our investment philosophy, ensuring utmost conservative, risk-adjusted underwriting.
Further, we have an even more strict set of quantitative measures related to the revenue and cost performance of a property we evaluate that all needs to be supported by a price that is generally 30% discounted from the going market rate for similar properties.
We pass on 99% of the deals we see. The 1% we bring to our investors are special, and worthy of your capital.
Our 2020 Deal Statistics
Deals Presented and Analyzed
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Are you interested in investing or would like to learn more?
Akras Capital is a GP in select deals each year and we invite like-minded investors to join us. If you’d like to explore investing, or have questions, let’s start a conversation.
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