NEBO Capital has established a relationship with a new nationwide entity-level investor. It has an investment strategy whereby it invests capital onto the balance sheet of Sponsors, primarily for GP co-investment, as well as general working capital and pursuit costs. This capital allows Sponsors to retain the majority of economics created through the GP investment and promote once the investor's return is met.
The investor is an experienced real estate capital provider with a $5B track record. The investor's predecessor company used this type of balance sheet capital to grow its lending business.
The strategy invests $25MM to $100MM in the Sponsor, with sizing based upon the Sponsor's equity in their existing real estate. The term is 6 years, with the ability to extend for up to 2 years.
The Sponsor has 2 years to take down the capital to allow for a matching of capital with deal flow. During the first 4 years of the term, the Sponsor can recycle capital from sold properties to deploy into new deals.
Ideal Sponsors will have well-defined business plans, strong track records of executing on them, great management teams with deal pipelines and existing LP relationships.
Call NEBO today for an introduction to this investor.