Equium Capital
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Real Estate Strategy

Real Estate Private Equity Strategy

Strategy Objective

Equium Capital manages private equity funds that focus exclusively on real estate development. The funds are available to accredited investors only and target superior investment returns, typically with a 3 – 5 year investment horizon. By partnering with the best real estate developers in North America and investing directly in the equity of carefully selected projects, the funds aim to deliver investment returns above long-term average equity returns with low correlation to public markets. This strategy aims to compliment investors’ portfolios by offering significant diversification and superior returns to equities.

 

Real Estate is Critical to a Diversified Investment Portfolio

Equium Capital real estate funds bring an important element of diversification to individual and family office investment portfolios. We believe in a comprehensive approach to investing, involving properly diversified and constructed portfolios that include an allocation to equity in real estate. This is different from owning REITs or income producing properties insofar as the aim is not income or yield, but significant capital appreciation over a short-to-medium timeframe with low volatility and low correlation to stock markets.

Among the most critical aspects of investing in real estate is thorough and unemotional due diligence, leading to superior underwriting and selection of projects. Equium Capital was founded upon conservatism and accountability, principles central to the firm’s culture and pervasive in its approach to investing in real estate. Discipline, intellectual rigour and a long history of conservative risk management are the key elements that Equium Capital brings to investing in the equity of real estate developments projects.

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Investment Process

With its hallmark conservatism, Equium Capital brings institutional private equity funds to individuals and family offices. Partnering with premiere real estate developers to identify unique opportunities across North America, Equium Capital manages private equity funds that focus exclusively on real estate development.
 

 
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Development Acquisition: Critical to the success of a real estate development project is conservative underwriting, disciplined land acquisition and above all else, partnering with the best developers. No project is without its challenges and Equium Capital’s hallmark conservatism prepares for bumps along the way to better protect invested capital.

Project Management: By partnering with premiere developers and engaging industry-leading consultants, the team at Equium Capital maintains strict, active oversight of projects from beginning to end. Being engaged in all aspects of construction and project management enables real-time decision making and better cost control, which ultimately drives superior investment returns.

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Investment Monetization: Equium Capital offers only development-oriented funds, meaning there is a planned exit of the project at completion. This monetization event, most frequently a sale of the property, triggers a return of capital and profit distribution from the fund to investors. By maintaining some discretion on timing the exit, Equium Capital can better manage risk and maximize investor returns.

 

Current Projects

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Smart Living on Hinton

Incorporating technology and sustainable design principles into their developments, Smart Living Properties offers small footprint rental apartments in modern buildings with enhanced amenity space, often including rooftop patios, theatres and business rooms. The company develops and operates properties in the Ottawa region with a portfolio of more than 25 buildings running at a 3 year average vacancy rate below 1%.

Asset Class: Purpose-Built Rental Apartments
Location: Ottawa, ON
Project Stage: FUND CLOSED; construction completed.
Project Completed:  Spring 2023; Stabilized Spring 2024
Development Partner: Smart Living Properties

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exclusive new projects coming soon

As a premiere private equity boutique partnered with institutions and high net worth clients across Canada, rigourous underwriting and disciplined risk management form the foundation of every project we bring to investors. Equium Capital Real Estate reviews new projects every week, advancing less than 10% of files to full due diligence and less than 10% of those to investors. Considering everything from marcoeconomic forecasts to project fundamentals, we bring only 1-2 projects to market each year, focusing exclusively on superior risk-adjusted opportunities.

We encourage both investors and developers to reach out directly for more information or to discuss a particular development opportunity.

Fund documents and project information available upon request

Real Estate Fund News
Real Estate Remains Investable. For Now.

Amid rising market volatility, it behooves investors to mind the growing list of leading indicators turning negative. Cameron Hurst, Chief Investment Officer, highlighted some remaining investable areas of global markets, e.g. real estate, but noted the critical requirement for a disciplined exit process in order to protect capital as the cycle comes to an end.

Playing the Odds: Knowing When to Buy Again

A good investment process should flag buying opportunities just as well as it keeps you out of harm’s way. While Equium Capital’s first goal is to protect capital, equally as important is earning a reasonable return for clients. Joining BNN Bloomberg, Cameron Hurst, Chief Investment Officer, highlights how a process can flag improving odds of success, what indicators caused the firm to start buying in late December, and where markets are going from here.

Equium Capital Closes Fund for Purpose-Built Rental Development

Equium Capital, on behalf of Equium Capital Real Estate (ECRE), is pleased to announce the closing of the ECRE Hinton Limited Partnership. The Partnership is a newly established limited partnership that has entered into a joint venture agreement with Smart Living Developments Inc. in connection with the development of a purpose-built rental apartment building in the City of Ottawa.

Now is the Time to Invest in Purpose-Built Rental

The rental renaissance is under way, according to Keith Reading, Director of Research at Morguard, who spoke about opportunities in Purpose-Built Rental on BNN Bloomberg. High land costs and rising interest rates present growing challenges for first time home buyers, who are instead turning to modern rentals. This confluence of soaring demand paired with a shortfall in supply is exactly why Equium Capital created a private equity fund investing in Purpose-Built Rental. Bringing the firm’s hallmark risk management and conservatism to a traditionally high-return asset class, Equium Capital’s private equity platform provides institutional real estate investments to clients and investment advisors across Canada.

Reality Check: It's the Beginning of the End

Every bull comes to an end. Market tops don’t happen overnight or even in one month, but they all inevitably yield to a bear that feeds on the excesses of the prior cycle. With negative conditional factors piling up, debt issuance at historical peaks and increasing parallels to 1999/2000, Cameron Hurst, Chief Investment Officer, joins BNN Bloomberg to offer a reality check on where the markets stand and what’s likely to come next.

Alternatives Shine Late in the Cycle: Time to Shift from REITs to Private Equity in Real Estate

With interest rates rising, investors should take profits in REITs and ready their portfolios for late-stage trends. To balance typical end-of-cycle stock volatility, investors should look at look at investing in real estate through private equity funds. Cameron Hurst, Chief Investment Officer, explains on BNN Bloomberg how interest rates suggest it’s time to make the switch.