Value-add investing isn’t new.
In fact, it’s actually one of the oldest approaches to investing, period. Our depth of experience, and our ability to translate complicated strategies into a common sense approach is what sets us apart from our competitors.
Active Management
An active role in the asset management of each transaction is critical to outsized investment performance and growth. Our results prove the active management thesis. We achieve above average cash yields for our investors, while protecting against downside risk. The assets we target frequently suffer from some combination of mismanagement, capital neglect, or have underlying value that can be extracted.
Focus on Yield
Lucern Capital Partners embraces the value approach to investing. We strive to deliver returns by purchasing assets below enterprise value or replacement cost, collecting stable recurring cash yields, and implementing programmatic value-add business plans. This is about identifying opportunities where we can improve the value of the asset, removing sole reliance on macroeconomic factors to drive value. This eliminates a dependence on a market’s prospects when evaluating an investment opportunity. Lucern focuses on long-term sustainable cash flow, dismissing the risky, short-sighted approach of investing in the “next hot location or industry".
Market Expertise
Our team’s deep expertise is what drives success. The knowledge base that exists here at Lucern Capital affords a focus on markets and asset-level strategies that will produce superior returns. Extensive experience analyzing market data, sourcing creative opportunities, and identifying transactions with favorable risk-adjusted return structures creates a clear competitive advantage.
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Acquisition Criteria
Lucern Capital Partners targets assets and investments that are opportunistic in nature, mismanaged, or in need of capital to accelerate growth. Our investments can be improved with a value-add business plan, active hands-on management, and experience. We identify, and currently pursue, such assets via these acquisition criteria.
Asset Type
- Value-add real estate opportunities
- Assets that are underperforming due to mismanagement or current inactive long term operators
- Assets that can be repositioned by implementing a strategic capital improvements program
- Opportunity to enhance value through individual unit and common area upgrades
Geography
- East Coast metropolitan areas, with a focus on the Philadelphia, North Carolina and South Carolina MSAs
- Submarkets with strong fundamentals including strong demand metrics, favorable employment, accessible transportation, as well as solid population, employment, and income growth
Transaction Size
- Deal sizes range from $5 million to $25 million in value allowing us to effectively compete, avoiding larger funds and institutional competition
Return Profile
Targeted investments generate ongoing cash flow and long-term capital appreciation that is uncorrelated to the public equity markets, providing investors with portfolio diversification
Deep Relationships
Lucern Capital Partners leverages its deep network of relationships to bring investors investment opportunities that have the ability to generate the superior risk-adjusted returns