Private Equity and Private Debt
Targeted Investments:
Whether they are immediately ahead or may be achievable after addressing various operating or financial challenges Fortune Fund Partners primarily targets companies with compelling growth prospects. We also target Companies that share our core values and are led by capable and accountable management teams. We seek to leverage ourselves as a value-added resource and work collaboratively with our portfolio companies and their management teams. Fortune Fund Partners and its network provide oversight and support in the areas of strategic planning, business and financial management, operational improvements, technology and add-on acquisitions.
Investment Parameters:
- EBITDA: > $1,000,000
- EBITDA Margins: > 10%
- Founder-owner
- Technology-driven Companies
- Leading position in a growing niche
- Strong recurring revenue
- Meaningful existing cash flow
- Healthy companies that are balance sheet distressed (facing a liquidity crunch)
- Predominantly North American companies
Real Estate
Targeted Investments:
We acquire performing and underperforming assets in the U.S where we can employ our value-add skills to improve property performance. Our performing strategy looks to source stabilized real estate with a long investment horizon and moderate leverage where we can unlock additional value through focused asset management. Our underperforming strategy focuses on attractively priced assets due to a lack of operating income, asset complexity and the inefficiency of the sales process.
Real Estate Equity Investments:
Our business opportunistically seeks to invest in well-located assets across the United States. In connection with these acquisitions, we build businesses that are set up to manage the underlying properties and ultimately maximize their value by instituting best-in-class management. Post-acquisition, we also invest in the properties to improve them before selling the assets and returning capital to our limited partners.
Bridge Loans:
- Fast financing for acquisitions and recapitalization loans for finished projects
- For initial purchase until entitlement
- For refinance after cash purchase until entitlement
- For recapitalization of finished product
- No construction during the life of the loan
- 6 to 12 month terms
New Construction Loans:
- Ground-up development for single family, multifamily and commercial projects
- Project funding at initial stage or mid-construction
- Major renovations or brand new construction with holdbacks ≥ 50% of loan amount
- 6 to 24 month terms
Step 1
Deal Prospecting
- Proprietary deal flow from a large international team
- Access to public-private partnerships and government funding
- Opportunistically focused on underserved sectors of the market
- Broad investment mandate to remain nimble and adapt with everchanging macroeconomic environment
Step 2
Due Diligence
- Applied best practices of leading megafund private equity groups
- Siloed diligence managed by professionals in their respective areas of focus (accounting, legal, sales & marketing, management, etc.)
- Thorough review of financials, accounting standards, projections, processes, systems, market position, industry dynamics, management team and more
Step 3
Investment Committee Review
- Systematic and detailed review by a large, diverse and thorough investment committee
- Careful review of risk and risk mitigants
- Detailed and adaptive modeling to support sensitivity, scenario and liquidation analysis
- Flat organizational hierarchy to support the valued input from a diverse investment committee
Step 4
Negotiating, Structuring, Executing
- In-house legal to provide an invaluable edge when negotiating and structuring deals
- Carefully crafted deal structures that align incentives, minimize down-side risk scenarios and participate in upside profitability
- Extensive history of closing large and complex deals
- World class outside counsel to ensure successful transaction closings
Step 5
Portfolio Management
- All portfolio companies and investments undergo a thorough review process of human capital, processes and systems
- Standardized monthly reporting packages that track current status of the business and identify potential concerns before they become a problem
- Extensively leverage our diverse team to support, refine and grow the business as needed
