GROWTH-EQUITY CAPITAL – PROGRAMMATIC VENTURE

Client: A top-10 private owner-operator in U.S. student housing, with a performance track record of 20yrs+.

Challenge: The Client desired to progress its capital-funding efforts from bespoke asset-level fundings (one-by-one joint ventures with institutional equity), to a larger more consistent investment program with a leading, like-minded institutional partner.

Opportunity: This Client has been one of the more established owner-operators in the student accommodation sector since the 1990s and has earned a reputation of diligence and operating excellence. Based on experience and changes in institutional investor demand for this asset class, the Client desired to better position themselves in the core and core-plus asset risk-return spectrum to more effectively pursue quality student housing assets in their focal markets. To do so, the Client wished to form a larger core/core-plus institutional partner base.

Solution / Execution: PalladianRC prepared the Client for institutional marketplace and process management. PalladianRC evaluated current institutional partners’ operating and investment track record and communicated return/risk preferences to Client, along with the institutional investors' preferred structural parameters. PalladianRC solicited interest from ~16 institutional investors with capabilities to invest at least $200mm of equity capital. PalladianRC negotiated and executed a multi-year $300mm equity programmatic JV program.

[This private company has been a PalladianRC customer and relationship for 8 years; PalladianRC principals are also investors with/alongside this company in multiple investments and the aforementioned programmatic JV]