DATA DRIVES DECISIONS
The market is always changing… and it isn’t even a single “market” per se. We lean on a wealth of information and analysis on the latest trends, opportunities, and challenges in this dynamic and ever-evolving industry. Let us provide you with valuable insights, data-driven research, and expert opinions to help you navigate private offerings. Whether you are a seasoned investor, or a newcomer to the industry, our goal is to equip you with the knowledge and tools you need to make informed decisions and stay ahead of the curve. So, sit back, explore, and discover some insights.
SIDECAR INVESTMENTS
A sidecar investment is a type of co-investment strategy where an investor partners with a lead investor (or fund) to participate in a specific deal. The sidecar investor contributes capital alongside the lead investor, and in return, gains access to the same investment opportunity, often on the same terms. This strategy enables the sidecar investor to benefit from the lead investor’s expertise and resources, while still having a degree of control over their own investment.
VALUE ADD INVESTMENTS
In commercial real estate, value-add refers to a strategy that involves acquiring an underperforming or distressed property, making improvements to it, and then selling or refinancing it at a higher value. The goal is to increase the property’s income-generating potential by improving its physical condition, upgrading its amenities, and repositioning it in the market.
FEES, FEES, AND FEES
The fee load for various deals will vary based on the type of property and strategy. These fees help operate the deal and align the incentives of the General Partners with the goals of the Limited Partner investors. Fee transparency should be paramount as you should fully understand how they impact overall returns.
AVOID DOUBLE FEES
The idea behind a feeder fund is not novel… it’s simply a fund of funds that invests into a single master fund. What makes our opportunity at Letterbox unique in the fund of funds world, is that we are able to give you the same access to these funds, but WITHOUT double dipping on all the fees – it’s all about the relationships.
EVERGREEN FUND PRIMER
Evergreen Funds offer investors the flexibility to rebalance portfolios… this structure helps maintain long-term strategic allocations while adapting to market conditions. It also benefits investors in reducing underwriting over time since the investments continue to grow until you request a withdrawl – similar to dividend reinvesting.
PRIVATE EQUITY TERMS
Get some familiarity with private equity terms – and learn how private equity firms structure their funds and align investor-manager incentives through mechanisms like carried interest. Learn the lifecycle of a fund—from capital raising by limited partners and active management by general partners to exit strategies that generate returns. It’s a useful primer for anyone seeking to grasp the language and mechanics of private equity investing.