Risk and Exit Framework

Professional investing is not about avoiding risk, but about understanding, pricing, and managing it. This page explains our disciplined approach to both.

Understanding Key Investment Risks

Market Risk

Economic downturns, interest rate fluctuations, or shifts in local demand can impact property valuations and rental income.

Execution & Development Risk

Projects can face delays, cost overruns, or challenges in obtaining necessary permits and approvals.

Liquidity Risk

Real estate is an illiquid asset. Selling a property can take time, and there is no guarantee of a quick exit, especially in slow markets.

Legal & Title Risk

Issues such as unclear property titles, ownership disputes, or unexpected regulatory changes can create significant legal hurdles.

How We Mitigate These Risks

Intensive Due Diligence

Every project undergoes rigorous legal, financial, and physical due diligence before being presented to partners. We scrutinize titles, market data, and financial models.

Sponsor Co-Investment

Our sponsors invest their own capital in every deal. We verify this as part of our sponsor diligence process to ensure alignment.

Asset-Specific LLP SPV

Each property is held in a separate LLP structure. This ring-fences risk, ensuring project performance is isolated.

Pre-Defined Exit Strategy

We identify and plan the most likely exit scenarios (e.g., sale to a developer, bulk transaction) before any capital is deployed, creating a clear, though not guaranteed, path to liquidity.

Exit Planning: Beginning with the End in Mind

A successful investment requires a clear and realistic plan for exit. We do not acquire assets without one.

Before any partner capital is committed, the sponsor prepares a detailed investment memorandum that outlines the primary and secondary exit strategies. This is a crucial part of our due diligence process.

Defining the Target Buyer: We identify the most likely buyer for the asset at the end of the holding period (e.g., an institutional fund, a large developer, or retail buyers).
Value Creation Milestones: The business plan clearly states the milestones that must be achieved to make the asset attractive to the target buyer (e.g., securing approvals, achieving leasing targets).
Indicative Timelines: While not guaranteed, we model expected timelines for the investment hold and exit, allowing partners to plan their capital allocation accordingly.

This forward-looking approach ensures that every decision made during the investment lifecycle is aligned with the ultimate goal of achieving a successful and profitable exit.

An Unavoidable Truth: Capital Is Always at Risk

Our framework is designed to manage risk, not eliminate it. Real estate investments are subject to market forces beyond our control.

No level of due diligence can guarantee returns or protect against all possible negative outcomes. All prospective partners must be financially and emotionally prepared for the possibility of delayed timelines, lower-than-projected returns, or, in a worst-case scenario, the loss of invested capital.

Ready to Invest with Discipline?

If you appreciate our structured approach to risk and reward, apply for partner access to view our curated deal flow.

Apply for Private Deal Access