Client: A second-generation, privately-held owner-operator of specialized single-tenant U.S. government-leased assets.

Challenge: PalladianRC was tasked with restructuring the operations, reporting, and investment functions of this business from a private non-institutional shareholder base to one positioned for growth in the listed marketplace with new common equity shareholders. This Client’s real asset holdings were also held in numerous separate investment vehicles with varying tax basis levels and tax-related contribution concerns; prior governance/control features of this business required communication and negotiation to be more reflective of listed company and institutional standards.

Opportunity: The Client’s track record of investing, unique yield and duration aspects of the investment class, and distinct lease and tenancy attributes made this business and its consolidation opportunity attractive for the listed markets. For existing stakeholders, this solution offered partial liquidity initially. It also offered new common equity investors the opportunity to participate in the growth of the existing portfolio’s cash flows and future value creation.

Solution / Execution: PalladianRC consulted with the Client’s key managers, legal and private Advisory Board members, to prioritize key goals as well as discuss key concessions to be made at critical decision points to best attract new-investor demand. PalladianRC also performed existing asset diligence and valuation analysis, including a comparative analysis to a prospective listed-peer set, to offer independent representation and alternative/counter perspectives to the opinions shared from IPO-motivated investment-banking firms. This exercise resulted in the executive management team having an additional set of eyes and experience offering suggestions to structural and financial aspects of the Client to allow for a successful public listing.

[PalladianRC has been an independent advisor or consultant to two other internally-managed private real estate companies in their efforts to transition into the public/listed markets – in each of these two other cases, PalladianRC coordinated, evaluated, and recommended multiple investment banking prospects for both equity distribution capabilities as well as concurrent lending programs]