Our Focus
Investment Types
Property development. We have the ability to provide equity to facilitate the construction of commercial premises for either lease or sale, and to provide funding to enable residential development for either outright or fractional disposal. Our target is to find opportunities for differentiated residential and commercial property developments (particularly healthcare, hospitality, student housing and boutique commercial). Our preference is investment opportunities where the upside comes principally through the entitlement process.
Leveraged buyout of a business that features material property development opportunities; referred to as "land-rich" private equity. For example, enhancing a marina with an adjacent residential development, or expanding a hotel´s facilities through development of excess land.
Business Acquisitions
Where an investment features an existing business, we seek operating partners who we can support growth in the commercial operations. In some cases this will be the existing management team of the business. Our private equity experience ensures we understand the importance of management autonomy of the business activities, while our property skills allow us to add value through developments that complement the primary business.
Project Criteria
- Funding Limits
Investment opportunities requiring equity funding of between US$2m to US$10m
- Investment Timetables
While our preference is an investment time period of two to three years, we have the flexibility to offer long term funding of up to six years which can be matched against the ideal opportunity.
- Target Return
Our target return is assessed on a deal by deal basis, and is a function of the perceived risks — however we typically require 20% plus.
- Control
While we have a preference for majority control, our funding can be structured to accommodate both investment partnerships and even minority investments.
- No Go Zone
We do not provide equity for industrial, high-rise and large scale undifferentiated commercial and residential developments. We also do not provide pure mezzanine or senior debt funding, although we do have a number of strong relationships with third parties who will provide this type of funding.
Our Values
Crystal Lake Capital LLC undertakes its investment activity according to the following values and philosophies:
- Honesty: Never compromise the truth
- Integrity: Communicate; actively share information and thoughts
- Seek a win-win for all parties; we approach each deal assuming that it is the first of numerous opportunities to work together;
- Say what you mean; be direct and transparent
- Agreements: Make only agreements that we are willing and intend to complete