Fund Structure
We have chosen to implement a streamlined structure in order to effectively manage expenses and expedite the initiation of operations. Furthermore, the utilization of a more conventional Real Estate Investment Trust (REIT) approach, whether in Indonesia or Singapore, does not permit the acquisition of undeveloped land or properties construction. To accommodate new investors, the fund will periodically issue additional shares. The legal process of equity ownership can also be completed remotely for added convenience.
Fund Structure
We have chosen to implement a streamlined structure in order to effectively manage expenses and expedite the initiation of operations. Furthermore, the utilization of a more conventional Real Estate Investment Trust (REIT) approach, whether in Indonesia or Singapore, does not permit the acquisition of undeveloped land or properties
construction.
To accommodate new investors, the fund will periodically issue additional shares. The legal process of equity ownership can also be completed remotely for added convenience.
Maturity Fees based on performance
Carried Interests Example
Launch:
March 1st, 2023
Maturity:
March 1st, 2029
Minimum Investment:
USD 40,000
Fund Type:
Open-End Fund
Distribution of Profit:
| From 0% to 8%: | LP: 100% / GP: 0% |
| From 8% to 14%: | GP: 100% |
| From 14% to 24%: | LP: 80% / GP: 20% |
| From 24% to ∞: | LP: 65% / GP: 35% |
The calculation of performance fees will be done on a pro-rata basis according to the duration of investment in the fund.
Asset Lock up Period:
Total liquidation of assets by March 1st, 2029. Properties will commence being sold during the last six months of the fund’s duration, with potential extended periods required for complete asset liquidation.
Exceptional Carried Interest Distribution:
Periodically, the Fund may allow a percentage of the carried interest to be withdrawn on a deal per deal basis. This decision will be made by the Fund and will depend on the availability of extra cash flow, such as that generated by the sale of a property.
Penalty if assets are withdrawn before maturity:
There is no administrative fee taken by the managing company.
Fund Management Fees:
Operating Fee: - GP charges an annual 2% operating fee
to cover operating expenses of the fund activities.
Other Fees:
Acquisition Fee - 3% of the acquisition value of the asset
acquired.
Asset Management Fee - 3% of the revenue from asset
management activities.
Capex Management Fee - 3% from the construction value
of real estate projects.
Disposal Value: 3% from the asset sales value before tax
Arrangement Fee - 1% of the loan volume originated.
Asset Disposal Fee - 3% from asset sales proceeds value
before tax.
Share Transfers:
Any proposed transfer or sale of shares prior to maturity
requires ManCo prior approval, and attracts fees payable
by the seller.
Carried Interests Example
Assets & Returns Example (LP+GP)
Assumption:
USD 100.000 AUM - USD 2000 (Management fee)
= USD 98.000
Estimated IRR: 27%
LP returns: 20,55%
Zero premature withdrawal scenario
Limited Partners Protection
High-Water Mark
What is a High-Water Mark?
High-water mark is the highest level of value reached by an investment account or portfolio. It is often used as a threshold to determine whether a fund manager can gain a performance fee.
Why does it matter to you?
Investors benefit from a high-water mark by avoiding paying performance-based bonuses for poor performance or for the same performance twice.
Example
Assets = 100k$
Y1 NAV goes up to 150k$
Y2 NAV goes down to 80k$
Y3 NAV goes back up to 170k$
At the end of Y1, High Water Mark is 150k$
Y2 => no carried interests above the HWM so no performance fees..
Y3 => 170k$-150k$=20k$ carried interests
New HWM is now 170k$
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