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.
Fund Fees & Carried Interests Structure
Carried Interests Example
Fund launch date:
March 1st, 2023
Fund end date:
March 1st, 2028
Minimum Investment:
USD 40,000
Fund type:
Open-End Fund
Asset Performance:
| 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% |
Asset Lock up Period:
Total liquidation of assets by March 1st, 2028
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Periodically, the Fund may allow a percentage of the carried interest to be withdrawn on a deal per deal basis.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Penalty if assets are withdrawn before maturity: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 Fee:
GP charges an annual 2% management fee to cover operational expenses
Other Fees
Acquisition Fee : 3% of the invested value.
Asset Management Fee : 3% of the revenue from operational activities
Disposal Value : 3% from the asset sales value before tax
Capex Management Fee : 3% from the construction value of the real estate project
Arrangement Fee : 1% of the loans volume originated
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$
Clawback Provision: 8%
What is a Clawback Provision?
The clawback provision enables limited partners to receive a refund of any incentive fees taken
by the general partner during the life of the investment if the preferred return (8%) is not
achieved. This is in place to protect investors in the event of a potential underperformance of the
Fund in the later stages of its life cycle.
Why does it matter to you?
The clawback provision is important to investors because it ensures that investors can receive
their preferred return (8%), and that any profits above that return are split as per the agreement.
The clawback provision also helps to increase investor confidence in a firm's financial
statements.
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