Case Study: Asset Management

New client is the CEO of one of the largest private real estate development companies in the United States. Client has greater than $50 million in real estate holdings that accounts for approximately 80% of current net worth. Client has multiple personal guarantees on current projects. In addition, client’s non real estate investment portfolio is constructed of primarily public equity and REITs.

The Waterloo Way

Waterloo worked to remove the personal guarantees by helping to garner project level securitization through an experienced lending solutions team. Our team sourced financing from approximately one hundred potential lenders. Through extensive knowledge of the industry and different lender’s abilities, our team was able to remove most of the personal guarantees by bringing in a new lender for the various projects. Waterloo then rebuilt the client’s portfolio with the primary objective of driving long-term performance, but also to hedge out the inherent risks associated with holding such a sizable position in one asset class. We did this by utilizing alternative investments such as hedge funds, certain derivative products designed to hedge the real estate portfolio, and by building out a private equity portfolio through current and future available liquidity.

For more information about this case study, please contact John Chatmas or call (512) 693-4363.