$100M multifamily real estate fund raise

Taking the client from zero to the capital needed to secure property acquisition and a subsequent $100M investment

The context

Waveup was contacted by a client with a strong ambition to create a household name in the multifamily investment market. Though our client had done all the necessary work on fund’s strategy and the potential property acquisition pipeline, his pitchbook just wasn’t resonating with the LPs.

Key client challenges

  • Lack of attractive narrative for the LPs; deck that looked very heavy and outdated.
  • Primary focus on the acquisition targets but no background on why to invest in multifamily or why to invest in selected geographies.
  • Inability to articulate the team’s vision and, most importantly, its execution capabilities, as well as why this investment opportunity is superior to others in the market.

 

 

 

 

 

HOW WE HELPED

Building the argument for multifamily investment

  • Our client had a clear strategy for investing in particular properties but didn’t have the supporting data that explained why this real estate subsegment was attractive.
  • We pulled data from the last 10 to 20 years to build an attractive argument for why one should consider multifamily real estate, looking into general macro trends and supply/demand indicators such as effective rent growth, cap rates evolution, and occupancy rates.
  • We have also researched the returns within different subsegments of RE, comparing them to multifamily and building a strong case for why multifamily would deliver superior returns compared to the other subsegments (hotel, industrial, office, etc.) and other asset classes (stocks).

HOW WE HELPED

Building an argument for investing in Class B properties

  • As all of the properties in the pipeline fell under the Class B segment, we also had to create an attractive narrative around why this specific segment will outperform in the market.
  • We conducted a more granular research on risk-adjusted returns for Class A, Class B, and Class C properties in the past and current market cycles, building an effective argument for why properties chosen by the client would provide the best risk-adjusted returns.
  • The data narrative was also subsequently supported with more emotional slides that used quotes from the press and industry influencers to create trust in our argument.
  • This research and work has resulted in a really strong, impactful, and data driven market section that has helped both those familiar and unfamiliar with the US multifamily market to understand why they need to invest.

HOW WE HELPED

Building the argument for this strategy and this team

  • In the initial conversations with the LPs, it became apparent that there was not enough trust in the team’s strategy and its ability to execute; this stemmed, in large part, from client’s inability to correctly position past experience and traction.
  • We have worked together with the client team to completely rebuild positioning of the fund itself as well as management running it, attractively highlighting past traction, results, and returns delivered.
  • We have added more slides that, in different ways, touch upon the team’s ability to execute and highlight the management network across the US to help build the trust.

OUR PROCESS

Two-week timeframe to a professional fund pitchbook, with minimum involvement from the client

1

Initial strategy
session

2 hour kick-off session to fully understand the future fund’s vision, strategy, and team capabilities

2

Research, writing &
design

120+ hours of building the initial narrative, market research, content writing, and design, completed in 1-week timeframe; all done fully by the Waveup team

3

Feedback and
polishing

Presentation of the initial draft documents, incorporation of the feedback, and polishing of the language and design

4

Complete product
ready to go to LPs

Fully ready product for the potential LPs that didn’t require any rework or adjustments, completed within 2 weeks from the start of the project

OUR RESULT

“Massive jump from not being able to secure a half-million investment to a 100 million funding round”

Research

We’ve successfully made the argument that now is the best time to invest in multifamily real estate – an argument that resonated with the investors

Story

We helped the client tell an attractive story about his fund, building an engaging narrative supported by stunning visuals

Product

We’ve delivered a professional pitchbook that really created an impression of “the next-gen multifamily fund”, loved by LPs and investors alike

Result

$100M secured, allowing the client to successfully purchase planned properties and launch the fund into the market

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