
A Comprehensive Approach
Investment Strategy for New Era Capital
1. Investment Approach: Equity-Based LP Positions
New Era Capital’s investment strategy is structured to give investors access to carefully curated, ground-up real estate development projects through limited partner (LP) equity positions. Instead of a fixed debt note, investors now participate directly in the upside of our developments. This equity-based structure is designed to deliver predictable annual returns of 12%, with the potential for enhanced returns of up to 16% annually depending on project performance.
2. Aligned Interests & Participation in Value Creation
LP Interests in Specific Deals: Investors subscribe as limited partners in deal-specific entities, gaining exposure to the full economic performance of each project.
Priority Returns: Each LP position targets a preferred annual return of 12% before any profit sharing is considered.
Upside Potential: Once the preferred return is achieved, investors share proportionally in additional profits, enabling total annual returns of up to 16% or more.
3. Flexible Investment Terms
Project-Specific Opportunities: Each investment is tied to a specific development, allowing investors to choose projects that align with their goals.
Typical Hold Periods: 12–36 months, depending on project scope, stabilization, or exit strategy.
Cash Flow & Distributions: Returns are distributed according to each project’s operating agreement, with the preferred return accruing and upside participation realized at refinancing or sale.
4. Risk Mitigation & Vertical Integration
Our vertically integrated structure reduces risk and increases efficiency:
Pre-Approved & Entitled Projects: We focus on developments that are fully entitled, minimizing regulatory risks.
In-House Asset Management Team: With our in-house team, we maintain tight oversight of the day-to-day project execution; coordinating across construction, realtors, banks, lenders, and property management teams.
Disciplined Capital Allocation: Conservative underwriting, third-party oversight, and stress-tested assumptions protect investor capital.
Ongoing Transparency: Monthly updates, detailed reporting, and access through our investor portal keep LPs informed at every stage.
5. Exit Strategy & Returns
Capital Events: Returns are realized through refinancing, stabilization, or sale of the property.
Preferred Return First: Investors receive their preferred 12% return before profits are shared.
Upside Distribution: Additional profits are distributed proportionally, often pushing total annual returns toward the 16%+ range.
Clear Timelines: Projects are underwritten with targeted hold periods, giving investors visibility into expected capital deployment and exit.