Wealth Management

Private Investors – Separate Accounts

Stone Eagle Capital Partners has set up comprehensive procedures for managing discretionary and non-discretionary separate account mandates. The different investment objectives of each private investor are addressed by the construction of a bottom-up, real estate portfolio. Each portfolio is tailored to meet the unique needs of each client, including specific geographic and sector preferences, target returns and risk tolerances.

Real estate portfolio construction

A dynamic blend of the multi-strategies deployed by the origination and transactions division, enhanced by active asset management capabilities, enables us to construct custom-made portfolios along the risk / return spectrum.

‘Portfolio construction along the risk/return spectrum’ chart.

Portfolio construction Process

1. Client investment criteria along the risk / return spectrum

Create a fluid blueprint that highlights the key cost and revenue drivers to be incorporated in the model portfolio to match the unique needs of each client in terms of target returns and risk tolerances.

2. Acquisition due diligence

Orchestrate legal, technical, property and market due diligence on select acquisition targets which display attractive core, value-added or opportunistic characteristics.

3. Asset selection

Target specific underlying assets and structure optimal asset-class allocations which are consistent with the overall investment objectives of the portfolio.

4. Asset performance enhancement

Conduct operational and financial reviews for each asset which constitutes part of the model portfolio and articulate the appropriate business plan on how to extract the “highest and best use” from the underlying asset.

5. Debt and equity sourcing

Back-test the model portfolio (using various sensitivities or “what-if statements”) on an unleveraged basis and then customize the capital structure to optimise the risk adjusted returns.

6. Risk management and post-closing monitoring

Perform methodical and on-going evaluations on each customised portfolio to identify and mitigate risks relative to asset class concentration, vintage year exposure, leverage levels and investment structure.

7. Exit Strategy

Explore alternative exit strategies to maximise the risk-adjusted returns at the time of liquidation. Subject to prevailing market conditions, each portfolio may be marketed as individual assets, in sub-portfolios or in its entirety, with the end goal being the optimisation of after-tax proceeds.