Property Details
Asset Profile
Value Add

Clairmont GP Fund III, LP

Nationwide

Multi-Focus Fund
Clairmont Capital Group Beverly Hills, CA
Clairmont Capital Group
  • IRR 23-28%
  • Equity Multiple 2.25-3x
  • Hold Period 4Y
  • Minimum Investment $25K
  • Year 1 Cash on Cash 5-6%
  • Stabilized Cash on Cash 9-12% in Y3
  • First Distribution Jul 2020
  • Distribution Frequency Quarterly
  • Co-Investment 3.8%
  • Preferred Return 8%
  • Investor Profit Share 80%
  • Asset Profile Value Add
  • Loan-to-Value 65%
  • Current Occupancy N/A

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”), without incurring an excess level of risk.

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 who contribute the significant majority of the equity. Historically, such “LP’s” have included notable Pension Funds, Private Equity Funds, Insurance Companies, Global Investment Banks and Sovereign Wealth Funds. As such, Clairmont has the ability to leverage (but not rely solely upon) 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. As President, Co-Founder and Investment Committee member of his prior firm, Clairmont’s CEO helped structure co-GP investments resulting in over $2.3 Billion of national real estate exposure through 37 unique investments with 14 elite sponsor partnerships.

Clairmont intends to seed Fund III with fourteen (14) assets (partially depicted in slideshow), providing diverse asset class, geographic and business plan exposure from inception. These would include 5 value-add multifamily assets across 4 states, 2 value-add workforce housing acquisitions, 2 multifamily development ventures in prime San Francisco submarkets, 1 core-plus office acquisition outside of New York and 3 Senior Housing developments. Clairmont anticipates closing the respective transactions on its corporate balance sheet and contributing them to the Fund in December of 2018. These seed assets are estimated to represent roughly 25% of the Fund’s target capitalization and offer an attractive blend of current going-in yield and material capital appreciation potential.

Detailed list of historical investments, track record, and additional Fund III legal documentation including Subscription Agreement and Limited Partnership Agreement available to prospective investors under NDA.

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”), without incurring an excess level of risk.

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 who contribute the significant majority of the equity. Historically, such “LP’s” have included notable Pension Funds, Private Equity Funds, Insurance Companies, Global Investment Banks and Sovereign Wealth Funds. As such, Clairmont has the ability to leverage (but not rely solely upon) 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. As President, Co-Founder and Investment Committee member of his prior firm, Clairmont’s CEO helped structure co-GP investments resulting in over $2.3 Billion of national real estate exposure through 37 unique investments with 14 elite sponsor partnerships.

Clairmont intends to seed Fund III with fourteen (14) assets (partially depicted in slideshow), providing diverse asset class, geographic and business plan exposure from inception. These would include 5 value-add multifamily assets across 4 states, 2 value-add workforce housing acquisitions, 2 multifamily development ventures in prime San Francisco submarkets, 1 core-plus office acquisition outside of New York and 3 Senior Housing developments. Clairmont anticipates closing the respective transactions on its corporate balance sheet and contributing them to the Fund in December of 2018. These seed assets are estimated to represent roughly 25% of the Fund’s target capitalization and offer an attractive blend of current going-in yield and material capital appreciation potential.

Detailed list of historical investments, track record, and additional Fund III legal documentation including Subscription Agreement and Limited Partnership Agreement available to prospective investors under NDA.

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 without incurring excess risk.
  • 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 23%+ IRRs and 2.25x+ investment multiples.
  • Target Allocation: 20% Student Housing, 20% Senior Housing, 20% Workforce Housing, 20% Industrial, 20% Other

Offered By

Clairmont Capital Group

Clairmont Capital Group

Beverly Hills, CA

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Assets Under
Management

Currently
$2.45B 30+ assets
Exited
$27.53MM less than 10 assets
Portfolio LTV
63%  
Historical
Realized Returns

Total IRR
32.6%  
Equity Multiple
N/R  
Annual Cash
N/R  
Years Of
Experience

As Principals
15+ years  
In Business
1 years  
Size
5 Staff * Dedicated investor relations
* All information is reported by Clairmont Capital Group as of 11/6/2018.
Assets Under
Management

Currently
$2.45B 30+ assets
Exited
$27.53MM less than 10 assets
Portfolio LTV
63%  
Historical
Returns

Total IRR
32.6%  
Equity Multiple
N/R  
Annual Cash
N/R  
Years Of
Experience

As Principals
15+ years  
In Business
1 years  
Size
5 Staff * Dedicated investor relations
* All information is reported by Clairmont Capital Group as of 11/6/2018.

Financials

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Offering Financial

Sponsor Diligence Report

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Diligence Preview

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 specific 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 Clairmont CEO's historical Co-GP investments.

Documents

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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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