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CAPITAL
Our Investment Approach
Our Strategies
Quantitative
Lucrum Capital runs systematic strategies founded on rigorous quantitative and computational techniques. While our strong foundation lies in pinpointing market inefficiencies through scientific research and advanced computations, we also value the insights of our experienced staff in discretionary investment, focusing on human analysis to unearth pricing anomalies across diverse asset classes.
To stay agile in fluctuating markets, we blend these approaches, allowing for hybrid strategies that combine quantitative forecasts with keen human insights. Regardless of the method, our commitment to analytical rigor remains consistent across all our investment strategies.
Event-Driven
Lucrum Capital adopts dynamic events-driven strategies, capitalizing on opportunities arising from significant corporate and market events. Our adept team identifies and leverages situations like government and infrastructure projects, regulatory and zoning changes, mergers, acquisitions, and other corporate restructuring events, aiming to harness potential market inefficiencies.
The core of this strategy lies in thorough research and precise execution, ensuring we exploit market responses to these events efficiently.
Our specialized team's deep understanding of event dynamics and their potential repercussions ensures robust returns, maintaining Lucrum's commitment to excellence and innovation in our investment approach.
Distressed
At Lucrum Capital, our distressed strategies focus on uncovering value from assets under financial or operational duress. Leveraging a comprehensive toolkit, we actively seek out messy situations (e.g foreclosures, bankruptcies, short sales, etc.) and other avenues to identify distressed assets.
Our team meticulously analyzes these situations to discern intrinsic value, often overlooked by mainstream markets. By navigating these complex scenarios with precision and foresight, we extract maximum value, emphasizing both capital preservation and growth, in line with Lucrum's dedication to industry-leading investment strategies.
Asset Classes
Real Estate Private Equity
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Direct Investing
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Co-Investing
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Real Estate Lending
RE Securities
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Private RE Notes
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Bankruptcy-Related Secured Assets
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ABS such as RMBS, CMBS, CMO, and CDOs
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Real Estate Syndications, DPPs, TICs, LP/GP
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Real Estate Derivatives: Forwards, Swaps, Options, and Futures
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Equity and Debt Participation Certificates
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Relevant Financial Instruments: Financial Swaps, CAT Bonds, RE and MBS Indices, etc.
RE Development
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Ground Up
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Adaptive Reuse
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Redevelopment
Underlying Product Focus
Multi Housing
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SFR/BTR
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Multifamily
Commercial
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Industrial
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Retail
Special
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Data Centers
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Renewable Energy
Our Process
Originating
Lucrum Capital employs a multifaceted approach to originate potential investments. The firm identifies opportunities by leveraging proprietary software and programmatic relationships we’ve built over time.
To ensure our search is productive, we build algorithms and market screening tools to identify market niches that have significant investment potential.
Screening
During the screening phase, we meticulously evaluate the viability of potential opportunities by analyzing profitability and associated risks. Using sophisticated technologies, such as AI-driven tools, we perform in-depth due diligence on asset details, market conditions, and the credibility of potential lenders.
The firm seeks opportunities in markets that are fragmented and have little to no competition from major institutional groups, ensuring each investment aligns with the firm's core competencies and its investment thesis.
Executing
Once a potential investment passes the rigorous screening process, we transition to the execution phase. This involves navigating the intricate landscape of financing, tapping into both debt and equity markets, and ensuring a successful closing of the trade or investment at play. The firm utilizes its expansive network, including preferred and joint venture equity partners, to optimize financial structures.
Whether it's navigating through natural disasters, operational interruptions, or regulatory shifts, our execution phase is characterized by agility and careful risk management, ensuring that each investment is structured to be antifragile.
Managing
After securing an asset, we prioritize its meticulous management. The firm continuously plans for and monitors the performance of each asset, employing advanced technologies to provide periodic updates and recommendations aimed at maximizing returns.
We take a proactive approach to asset management, seeking to capitalize on any market inefficiencies or emerging opportunities that align with our investment principles and goals.