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Axel Reijmers| Managing Director
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(203) 501-7667
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Overview
Investment Thesis
The real estate industry will see a surge in technology adoption in the coming years, catalyzed by a shifting macro environment.
Early-stage PropTech funds with < $250 AUM and access to real estate portfolios will disproportionately benefit from this development
Performance to-Date
Inception-to-date, our Fund I has achieved
1.33x MOIC and 19% IRR
1.A detailed financial model with assumptions and scenario analysis functionality is available upon request. Target returns are presented solely for the purpose of providing insight into the company’s objectives, detailing anticipated risk and reward characteristics, and establishing a benchmark for future evaluation of performance. Target returns are not a predictor, projection or guarantee of future performance. There can be no assurance that these targets will be met. There is no guarantee as to the company’s future performance or the adequacy of the methodology used for estimating future returns. Target returns should not be used as a primary basis for an investor’s decision to invest
Opportunity
Technology has not meaningfully penetrated real estate – the world’s largest asset class, valued at over $375 Trillion
- Facing high cost of capital, rising OpEx and carrying costs, and a labor shortage, real estate is increasingly turning to technology to solve its problems
- Adoption will gain momentum amid these mounting macro pressures
- The PropTech industry is positioned to grow from $33.57B in 2023 to $89.93B by 2032 – an 11.9% CAGR
Our Advantages
Expertise
We are real estate operators, and approach investment and management with first-hand experience of the problems this industry faces
Network
Our network of developers, operators, vendors, and investors – many of whom are our LPs – acts as a catalyst for success. These relationships amplify the potential of our portfolio companies
Active Platform
We leverage our real estate investment, management and development platforms to source ideas, diligence solutions, grow revenue, and refine products/solutions
Proactive Portfolio Management
We’ve created a repeatable & scalable portfolio management process that reduces risk & improves outcomes
Hands-on Approach
Board involvement and routine strategy calls to ensure close alignment, provide problem-solving support, and assist with recruiting
Back Office Services
Productized financial services offering (accounting, KPIs and FP&A) for those companies that would benefit from fractional CFO and accounting support during the seed stage
PortCo / LP Commission Model
Referral program that compensates the Fund and its LPs for introducing portfolio companies to customers in our network – aligning interests and generating yield (see Appendix A)
Our Process
Our Team
Paolo Boero
Managing Partner
Matt McDonnell
Managing Partner
Nicholas Yarnall
General Partner
Pedro Cuevas
CFO
William Yarnall
Sr. Associate
Noah Bachow
Founder / CEO
Bachow Ventures
Marko Kazanjian
Senior MD, Capital Markets
Institutional Property Advisors
Michael Patton
Founder / CEO
Fetch Package Delivery
Specific Risks
- Early-stage company risk – limited financial history, limited assets, and cash flows
- Economic risk – decline in economic demand could negatively impact valuations, and prevent expected returns on investment
- Key person risk – lightly-staffed and fund expertise is concentrated in a few key executives
- Competitive risk – early-stage venture investing is highly competitive with new opportunities coming into the market and new funds vying for dynamic but selective pool of prospects, leadership and labor. Existing and/or new entrants, some with deep pockets and global operations, could develop and/or expand to compete in Stellifi’s markets
- Technology risk – new and/or preferred technologies may enter market; infringement on patent and/or trade secrets
- Regulatory and legislative changes could negatively impact the platform
- Private securities are speculative, illiquid, and carry a high degree of risk – including the loss of the entire investment.