Clairmont GP Fund III, LP

Nationwide

  • Target Annual Cash 6-9%
  • Target IRR 22-26%
  • Target Equity Multiple 2.25-3x
  • Asset Profile Multiple
  • Min. Investment $25K
  • Estimated Hold 4Y
Clairmont Capital Group Beverly Hills, CA

Multi-Focus Fund

About this Fund

Clairmont GP Fund III (the “Fund”) makes investments in the General Partnership (“GP”) entity of institutional-quality commercial real estate projects nationwide alongside elite owners, operators and developers. The Fund aims to deliver superior risk-adjusted returns by providing access to a segment of the capital stack rarely available to outside investors.

Specifically, the Fund enables investors to participate in the GP’s outsized profit sharing mechanism known as the promote (“Promote”). The Promote acts as incentive sharing to the GP for exceeding pre-defined performance benchmarks over the investment term. Clairmont investors are afforded the unique opportunity to leverage smaller equity commitments to generate outsized returns relative to those earned by the Limited Partner (“LP”).

Clairmont’s attractive position in the capital stack allows the Fund to invest alongside successful, veteran sponsors with strong track records who are partnered with institutional LP investors that contribute the significant majority of the equity. Historically, these LP investors have included Pension Funds, Private Equity Funds, Insurance Companies, Global Investment Banks and Sovereign Wealth Funds. As such, Clairmont has the ability to leverage the intellectual capital, resources, depth of experience, due diligence and oversight provided by both world-class sponsors and their institutional LP counterparts.

Clairmont has an experienced management team with many years of Wall Street and real estate experience, and benefits from successfully sourcing, structuring and executing GP equity co-investments for the past four (4) years (Funds I and II). This has resulted in over $2.3 Billion of notional real estate exposure through 37 unique investments with 14 elite sponsor partnerships.

Clairmont plans to seed Fund III with ten (10) assets (partially depicted in slideshow), providing diverse asset class, geographic and business plan exposure from inception. These would include 7 value-add multifamily assets across 4 states, 2 multifamily development ventures in prime San Francisco submarkets and 1 core-plus office acquisition outside of New York. Clairmont anticipates closing the respective transactions on its corporate balance sheet and contributing them to the Fund in November of 2018. These seed assets are estimated to represent roughly 20% of the Fund’s target capitalization and offer an attractive blend of current going-in yield and material capital appreciation potential.

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Key Points

  • Unique opportunity for investors to participate in the disproportionate share of investment returns offered to the GP (the ”Promote”), providing access to a section of the capital stack rarely available to outside investors.
  • Access to institutional-quality real estate investments with elite sponsors and prominent capital partners.
  • Unprecedented diversification of geography, asset class, sponsorship and business plan, achieved by leveraging small equity investments to gain exposure to large projects.
  • Attractive combination of current yield and capital appreciation potential with superior risk-adjusted return dynamics.
  • Targeted returns exceeding 20%+ IRRs and 2.25x investment multiples.

Financials

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Offering Financial

Location Details

Nationwide

The Fund invests in institutional-quality commercial real estate nationwide with emphasis on Primary and Secondary market opportunities.

The Fund aligns itself with owners and developers who have historically demonstrated expertise in and knowledge of an asset class and geographic footprint that lends itself to their business plan and focus.

Additionally, each new investment in each submarket is further diligenced and approved by the corresponding institutional equity partner, offering an attractive “Checks-and-Balances” system for Clairmont investors.

The graphic to the left depicts locations of historical co-gp investments from prior investment vehicles.

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Documents

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  • View, download, and print the detailed financial projections
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Offering Agreement Documents

Frequently Asked Questions

Below are some of the most frequently asked questions about this offering.

The first projected distribution is scheduled for July 2020.

Distributions are scheduled to go out on a quarterly basis.

Yes non-US residents are welcome to apply. Please contact the sponsor for more details.

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Have a Question?

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