Welcomes White Coat Investors
Clairmont Capital Group is a Los Angeles-based real estate private equity firm, specializing in General Partner (“GP”) equity co-investments alongside best-in-class commercial real estate operators, developers and institutional capital partners in major U.S. markets.
Clairmont places specific emphasis on four (4) key risk mitigation techniques in today’s market:
1) Focus on Asset Classes that are "market inelastic” and have sustainable demand drivers in the face of fluctuating macroeconomic conditions (Student Housing, Senior Housing, Industrial, Workforce Housing Multifamily)
2) Partnership with elite, vertically-integrated operators (“GPs”) with robust balance sheets and strong, multi-cycle track records
3) Alignment with institutional equity partners (Pension Funds, Insurance Companies, Family Offices) with patient capital and minimal risk of insolvency
4) Conservative Leverage: Average 60% Loan-to-Cost
DEPTH OF EXPERIENCE
Clairmont executives have overseen the origination, structuring and active management of 51 unique co-GP equity investments across multiple Fund and Separately Managed Account (“SMA”) vehicles representing more than $3.7 Billion worth of notional real estate exposure and 19 operating partner relationships.
CCG GP Fund III provides its investors access to the GP segment of the equity capital stack, enabling them to participate in the sponsor’s disproportionate profit sharing mechanism known as the "promote". The promote acts as an extra incentive payable to the GP for exceeding pre-defined performance hurdles over a project’s lifecycle. The Fund captures the opportunity to earn a much greater portion of the project’s returns upon successful execution of the business plan, creating a significant performance differential or "alpha" when compared to the returns of the institutional LPs with whom it invests alongside.
CCG GP Fund III has the unique ability to create substantial alpha relative to the returns of the LP without incurring excess risk. The projected alpha creation is illustrated in the graphs and tables below.