Due Diligence.
Real estate evaluation is a pivotal process in the real estate industry. It involves a comprehensive assessment of a property’s physical attributes, operational costs, expected rental rates, and future market dynamics that could influence income and potential capital appreciation. This…
Economic Value Drivers.
In private real estate, understanding the key economic value drivers is crucial. These drivers determine the expected income and price appreciation of a property, based on its current and future economic use. This could be for residential or commercial purposes….
Private Real Estate.
Private real estate debt and equity investments are unique types of investments that have specific characteristics. These characteristics are derived from the economic value that these investments can generate from current and future agricultural use or the timber growth cycle,…
Strategic Asset Allocation.
Private market debt investment is a type of investment that is usually linked with issuers and assets that are either sub-investment-grade or unrated. These types of investments often involve securities that come with restrictive covenants and contingencies such as callability…
Due Diligence.
Special Situations Due Diligence Special situations investments refer to unique opportunities that arise due to certain circumstances such as mergers, acquisitions, or bankruptcy. The analysis is more detailed in private markets than in public markets due to the role of…
Financial Distress.
Financial distress is a term used to describe a situation where a company’s asset value (V) is less than the face value of its debt (D). This imbalance can lead to severe consequences for the company, including bankruptcy, restructuring, or…
Distressed Debt.
Distressed debt is a financial term that refers to the fixed obligations of issuers who are insolvent, at risk of insolvency, or have a higher probability of defaulting on their interest or principal payments on time. Insolvency is a state…
Private Debt Investments.
Private debt investment funds have emerged as a significant source of debt capital in the aftermath of the Global Financial Crisis of 2008–09. This emergence was primarily due to the implementation of stricter bank capital standards. These funds are primarily…
Private Debt Profiles.
Private market strategies are a crucial part of the financial landscape, encompassing areas such as private real estate, infrastructure, and buyout equity. These strategies often rely on a combination of borrowed capital and equity to develop and operate an asset…
Mezzanine Debt.
Private market strategies are investment strategies that focus on non-publicly traded investments. These strategies often employ complex financial structures such as mezzanine structures and unitranche debt. To illustrate, consider an example of a private equity firm investing in a…
