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-Ended 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, 2028
Properties will commence being sold during the last
six months of the fund's duration, with potential
extension periods if required to complete the
liquidation of assets.
Fund Management Fees:
Operating Fee: - GP charges an annual 2% operating fee
to cover operating expenses of the fund activities.
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.
Loan 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$
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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