GROWTH-EQUITY CAPITAL – FIRST-TIME INSTITUTIONAL PLACEMENT
Client: An internally-managed private REIT focused on single-tenant, commercial net-leased assets, from which PalladianRC principals maintain a 25-year+ relationship with the founding executives.
Challenge: Intending to expand their equity-capital base outside of their successful, traditional individual-investor network, the Client sought to further its capital-partner base to include more institutional relationships. This intended expansion would explore unique institutional capital pockets, and reflect the private REIT structure of the company and its portfolio at that time, ultimately striving to scale their business.
Opportunity: PalladianRC was the sole external advisor and agent on behalf of the Client, reviewing and positioning the Client’s track record and capabilities for the institutional marketplace over several months of diligence and consulting. This enabled the introduction of the Client to 41 institutional equity sources, including domestic institutional managers, plan sponsors, consultants, family offices, trust companies, and ultra-high-net-worth investors (multi-family investment offices, MFOs).
Solution / Execution: PalladianRC was able to structure and execute an equity-investment program into the private REIT over a period of six years, whereby three of these institutional investors ultimately invested over $75 million in equity REIT shares (generating, for its clients, an average annual total return exceeding 12% over a nine-year period before the Client’s portfolio was monetized/sold).
[This private company has been a PalladianRC customer or relationship for 25 years; PalladianRC principals are also investors with/alongside this company]