It should come as no surprise that the old investment adage about getting what you pay for holds true for preferred stock, too. Despite often being pitched as a bond alternative, especially lately, there are multiple factors beyond dividend yield to consider. Among the features, an investor needs[...]
Filed Under: Due Diligence, Best Business Practices, About FactRight, Best Practices
Affiliated transactions can be thorny. They raise conflicts of interest and create additional governance challenges and risks. The relative fiduciary duties (or lack thereof) that the manager owes to each side of the transaction complicates the picture. Investors are understandably apprehensive[...]
Filed Under: Due Diligence, Alternative Investments, Best Practices, Private Placements
One of the most prominent products in the alternative investment space in recent years have been DSTs/1031 Exchanges, which has grown to become an annual $8 billion to $10 billion industry. However, with recent trends in rising interest rates and cap rate compression for many asset classes, due[...]
Filed Under: 1031 Exchange, Due Diligence, REITs, Real Estate, Alternative Investments, Video, DSTs, About FactRight
We came, we saw, we diligenced.
Filed Under: Due Diligence, Alternative Investments, About FactRight
Background
Filed Under: Due Diligence, Alternative Investments, Best Practices
I’m going to get this out of the way right now. I don’t know where cap rates will end this year, and certainly can’t predict where they will be in five years or in ten. What I do know is that cap rate compression has provided a notable tailwind to real estate performance for the past several years.[...]
Filed Under: Due Diligence, Real Estate, Alternative Investments, Best Practices
Inflation is running at 8.6%, and the Fed has been aggressively raising interest rates. It is now signaling that equally large rate hikes could be on the horizon as early as next month. The Fed’s dual mandate is to keep the economy at full employment while at the same time keeping inflation under[...]
Filed Under: Due Diligence, Real Estate, Alternative Investments, Best Practices
In 2017, Congress created the qualified opportunity zone (QOZ) program to encourage long-term investment in economically distressed communities by providing investors with three tax incentives to help drive private capital to lower-income areas throughout the country. Since then, the FactRight team[...]
Filed Under: Due Diligence, Alternative Investments, Qualified Opportunity Funds, Best Practices, QOZ Funds
An investment committee (IC) provides wealth management firms a formalized mechanism for improved due diligence, ongoing monitoring, and decision-making. A good IC aligns organizational goals, roles, and processes and enhances accountability, clarity of purpose, and shared knowledge among the[...]
Filed Under: Alternative Investments, Best Practices
An interval fund is a subcategory of closed-end funds and is a Regulated Investment Company (RIC), which is subject to 1940 Act regulation. Shares of interval funds are not generally “redeemable,” which is why the funds are classified as closed-end rather than open-end funds. Interval funds are so[...]
Filed Under: Due Diligence, Interval Funds