Residential income experiences less volatility than any other asset class's fundamental valuation metric, which means residential real estate securities, when properly structured and managed, offer the potential to generate the best risk-adjusted returns. (For a discussion of this topic, see our white paper: Determining Equilibrium Value for Residential Real Estate.) For this reason, we strive to bridge the divide between responsible real estate operators and the private capital markets by offering the exclusive financial skills of risk engineering and capital formation to the private real estate investor market. Unlike crowdfunding, our investment banking services afford real estate investors the opportunity to responsibly raise both debt and equity capital on their own terms and in unlimited quantities via an investment fund dedicated to capitalizing their business. To accomplish this task, we establish quantitative risk management protocols for strategically designed financial products under an institutional-grade private equity or hedge fund structure, and develop compliant marketing channels for their distribution in cooperation with our partner broker-dealer. This entire suite of services is available at ultimately no cost to our real estate investor clients as all upfront expenses are reimbursed by the fund:
We develop the best model and capital structure to maximize clients' risk-adjusted
returns while matching their efforts with potential passive investors’ risk, return & liquidity appetite.
We have the requisite offering documents drafted (i.e. create actual securities for sale), and create industry standard marketing materials for a institutional-grade fund providing lower-cost capital to clients' businesses. This allows our clients to leverage our capital position, performance history and investment banking relationships.
We ensure all necessary SEC filings are submitted & compliance issues are addressed, provide ongoing risk management support, and manage all reporting.
Adagio Compensation: $50k deposit for drafting documents (reimbursed to our clients as an expense to the fund) plus 2&20 on the feeder fund (deducted from the fund's gross performance). For more complex solutions, Adagio may be retained for consulting services at a rate of $750 per hour.
To learn more, read our Investment Banking Overview. For those who feel they need to develop a better understanding of financial principles before taking advantage of our investment banking services, we offer a comprehensive educational program, the Accredited Investment Professional ("AIP") course and designation, to prepare private real estate operators for engagement with the capital markets.
LEGAL DISCLAIMER: This site and its content is not an offer to sell, nor a solicitation of an offer to purchase any securities instrument or any interest in Adagio, LLC or its current or future affiliated entities.