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.
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 - we remove the sole reliance on macroeconomic factors to drive that 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".
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.
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.
- Value-Add 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
Targeted investments generate stable income / EBITDA while offering opportunities to directly add-value through active asset management
Lucern Capital Partners cooperates with, protects, and compensates brokers and other industry professionals that bring us true "off-market" opportunities
- Northeast, Mid-Atlantic, and the Southeast Markets
- Submarkets with strong fundamentals including strong demand metrics, favorable employment, accessible transportation, as well as solid population, employment, and income growth
- Deal sizes range from $5 million to $25 million in value allowing us to effectively compete, avoiding larger funds and institutional competition