Many high net worth investors are now realizing that alternatives are an important part of a modern investment portfolio. Yale University’s endowment has grown from $4 billion to $25.6 billion net of spending over the last 20 years by focusing on alternatives with high expected returns, such as real estate.
No asset has performed better over the last thirty years than private commercial real estate. And adding the right private equity real estate to a traditional stock and bond portfolio can yield the best risk-adjusted return, according to an institutional investment study by the National Council on Public Employee Retirement Systems — better than stocks and bonds alone. Investing in private commercial real estate is also extremely tax efficient.
Why Invest in Origin Fund III?
Origin Fund III will be a diversified portfolio of multi-family and office properties across eight high growth markets. The investment strategy is a continuation of Origin’s first two funds, which are on track to generate more than a 25% annualized net return.
Fund III’s largest investors are Origin’s principals. David Scherer and Michael Episcope formed the company in 2007 as a vehicle to protect and grow their own capital. Since then, every decision made by our team is about making sure our goals are fully aligned with those of our partners.
In addition to our principals’ significant $11.7 million co-investment, we ensure our entire team is aligned with our investment partners by compensating them based on performance. Everyone at Origin has ‘skin in the game,’ so we win when our partners win. Our team comes to Origin from prior positions at well-respected investment firms such as Lightstone, Deutsche Bank, Equity Office Properties, Goldman Sachs, GE Capital and Starwood Capital Group.
Our track record is evidence of our ability to execute and make sound decisions. We’re a top 10% fund manager, according to data from Preqin, as of June 2016. This means we’ve outperformed 90% of other real estate fund managers for the same vintage and time period. More importantly, we have outperformed ourselves with 96% of our deals achieving better than their initial projections.
Another benefit of investing in private real estate through Origin is our efficient structure. We don’t believe in paying people to ‘sell’ our products, which means more capital is put back into each investment rather than in the pockets of a middleman. Our direct-to-consumer model keeps us more efficient and enables our partners to reap the maximum benefits of this asset class.
The minimum investment in Origin Fund III is $100,000. With this lower minimum, more investors have access to the diversification created by our real estate fund structure. Their capital, and in turn their risk, is spread across more than a dozen high-quality properties protecting them from an under-performing asset. And they have the expertise of the Origin team working on their behalf.
These guiding principles have enabled us to grow our partner base to more than 300 strong, with more than 90% invested across multiple Origin funds.
Want to Learn More?
If you’re interested in learning more about Origin Fund III as well as current offerings, sign up to access our investor web portal.