Legacy Capital Partners’ new 50Fund®
September 25, 2013
Legacy Capital Partners’ new 50Fund® Investing approach opens up secondary markets and stronger returns for investors
NEW YORK, NY – September 25, 2013 – As the major coastal and gateway cities, those markets that traditionally attract institutional real estate capital, become over-heated and increasingly expensive, investors are looking for ways to access deals in secondary markets, where there is greater opportunity for stronger returns.
Ohio-based Legacy Capital Partners has not only honed in on secondary markets, they have also created an entirely new way to invest in real estate private equity, known as 50FundTM Investing. Under this approach, Legacy typically invests less than $7.5MM in any one investment and targets middle market opportunities in secondary markets. As a result, Legacy operates in an un-crowded space and below the radar of most institutional investors – where investment opportunities are plentiful.
Legacy’s 50FundTM Investing approach represents a dynamic fund structure whereby capital is pooled in 50 million dollar increments. This ensures capital is allocated across the most relevant strategies, targeting smaller but more lucrative deals. A series of 50Funds can therefore accomplish everything a large fund can, but provides greater agility for the overall capital strategy to move organically with the market. It all but eliminates investors’ concerns that their committed capital can be fully deployed before an investment strategy is no longer relevant, and it ensures the capital will be deployed over a shorter period of time. So committed dollars are invested dollars earning a return – not just sitting idle.
“We appeal to investors, large and small, who believe agility and flexibility are important in real estate investing,” said David St. Pierre, commercial real estate expert and Legacy’s co-founder and president. Mitchell Schneider, a 25-year veteran of the real estate development industry and Legacy’s co-founder and CEO, added, “This is how Legacy has invested since our inception in 2004. The 50FundTM structure simply allows us to institutionalize our thinking.” “Coming out of the recession, we had to look hard at what we were doing and where the opportunities were,” Mr. St. Pierre said. In mid-2009 Legacy took a laser-focused approach and began investing in the acquisition and repositioning of existing multi-family assets.
“It seems everyone is chasing multifamily now,” Mr. Schneider said, but that certainly wasn’t the case when Legacy made its first post-recession multifamily investment. “When everyone else is looking right, we try and look left – and in 2009, when everyone else was looking down, we were looking up,” he said.
Legacy has fully invested its first value-add multifamily fund and is investing out of its second value-add multifamily fund. “We saw the strategy still had a long runway and felt it made sense to continue,” Mr. St. Pierre said.
But that is not to say the value-add multifamily strategy will last forever. Markets are constantly changing and Legacy is consistently working to identify the next investment strategies that will best position their investors to benefit from market dislocations and inefficiencies at different points in the real estate and economic cycles. In fact, Legacy is currently developing its next 50FundTM, which will focus on opportunities in the retail sector, an asset class that Mr. Schneider knows well, having developed over 4 million square feet of retail space in his 25-year career.
According to strategist Kyle Dunn of Vancouver-based Meyler Capital, “Institutional investors are becoming increasingly leery of committing massive amounts of capital to a strategy that they don’t know will be relevant in 4 years. Up until now they have been stuck, having no other alternative. But 50FundTM investing changes everything – it not only allows a strategy to organically change over a prescribed term, it also significantly reduces an investor’s reliance on the secondary market.”
He added, “In offering 50FundTM portfolios, Legacy Capital may have inadvertently changed private equity – for the better.” More dollars can bring more distraction and Legacy believes bigger is not necessarily always better. Legacy’s boutique approach not only allows for custom-tailored portfolios for each of their investors, but also allows the firm to be focused and selective.
About Legacy Capital Partners
Legacy Capital Partners is a real estate private equity firm that offers their investors the opportunity to invest in a variety of exceptional income producing real estate projects across the country by providing high-quality real estate partners with a reliable and efficient source of patient and flexible equity capital. To date Legacy has invested in 28 projects in eight states, representing a portfolio with a total cost basis of $740 million.
To arrange an interview with Mr. St. Pierre and Mr. Schneider, contact:
Pace Public Relations
1350 Avenue of the Americas, Suite 293
New York, NY 10019
Telephone: (646) 599-9222
Mobile: (732) 642-7192
Legacy Capital Partners
The Offices at Legacy Village
25333 Cedar Road, Suite 300
Lyndhurst, Ohio 44124
Phone: 216-381-2303 Fax: 216-381-2901