CLAIRMONT ACCESS FUND

  • Summary

    Summary

  • Strategy

    Strategy

  • Diligence

    Diligence

  • Team

    Team

  • Record

    Track Record

Clairmont Access Fund LLC

Investment Overview

  • Summary

    Summary

    Fund Overview

  • Strategy

    Strategy

    Investing in Student, Senior & Multi-Family Residences

  • Diligence

    Due Diligence

    Independent 3rd Party Fund Diligence Report

  • Our Team

    Team

    Real estate professionals with 35+ years of experience

  • Track Record

    Track Record

    Clairmont Historical IRR over 37%

Investment Summary

Fund Type

fund

Student, Senior & Multi-Family Residences

Targeted Return

25%+

Distributions

Quarterly

Min. Fund Investment

$25,000

Expected Close Date

Dec. 31, 2020

Limited spots available to invest

Investment CLosed

  • Clairmont Summary


  • GP Partner Interviews


  • Complete Investor Presentation

Clairmont Investment Overview

Clairmont GP Fund III LP (“Clairmont” or “Fund III”) is seeking to raise the last $5 million of a total of $50 million (recently increased from $40 million) in capital to make diversified General Partnership equity investments (“GP Co-Investments”) alongside best-in-class real estate sponsors and renowned institutional investors. By investing in the GP entity and participating in the promote, investors in Clairmont GP Fund III are afforded the opportunity to generate superior, risk-adjusted returns and unparalleled sponsor, asset class, business plan, and geographic diversification, while limiting downside returns to those of its institutional LP counterparts. Sponsors are focused primarily in development and value-add investments in student housing, senior housing and multifamily assets. Institutional GP partners include CA Ventures, DM Development and Davis Partners with limited partner equity investments aggregating over $1 billion from Goldman Sachs, Urban Land Company, Mitsubishi/DRI, Liberty Mutual Life Insurance, Crow Holdings, Ocean West Capital, Deutsche Bank and others. Clairmont’s Fund III is nearly fully invested with 40 investments with an aggregate capitalization close to $3 billion. Clairmont is targeting annualized IRR of 25% with an equity multiple of 2.25x. Fund III is targeting a final closing on December 31st, 2020. Fund III is managed by Clairmont Capital Group (“CCG”).

  • Performance

    37% IRR on realized Co-GP investments
    25% targeted annualized IRR
    Fund III Provides the Access Fund a 14% Preferred Return (vs. 8% standard)

  • Experience

    Over 35 years of real estate investing experience
    $86 million invested in 80+ Co-GP investments with 27 sponsors
    Investments in over $4 billion in aggregate capitalizations

  • Investments

    Fund III has already invested $37 million in 40 investments
    Current investments have aggregate capitalization of nearly $3 billion with a remaining duration of 2.7 years

Clairmont Access Fund LLC

Clairmont Access Fund LLC (the “Access Fund”) is raising capital to invest in Clairmont GP Fund III LP. The Access Fund is raising capital through a “feeder fund” structure called an access fund by aggregating up to 100 investors at a minimum investment of $25,000 each and will invest the capital into Clairmont. Since the Access Fund will aggregate a multi-million dollar investment, the Access Fund has negotiated to receive a 14% preferred return compounded annually, as compared to direct investors into Fund III at the $250,000 minimum investment level who will only receive an 8% preferred return. The Clairmont Fund III is nearly fully invested and Fund III and the Access Fund are targeting a final closing of December 31, 2020.

Courts of Bent Tree

Dallas, Texas

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San Francisco, California

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Tallahassee, Florida

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Key Considerations

  • Access to an Institutional Fund - The Access Fund provides individual investors with access to the institutional Clairmont fund with a $25,000 minimum investment, as compared to a $250,000 minimum investment directly into Clairmont Fund III.
  • Experience - Clairmont is a highly experienced investment manager with over 35 years of combined experience in over 80 Co-GP equity investments representing aggregate capitalizations of over $4 billion.
  • 14% Preferred Return – The Access Fund has negotiated to receive a 14% preferred return from Clairmont, as compared to an 8% preferred return for direct investors into Fund III. Clairmont is targeting an annualized return of 25%+.
  • Proven Track Record – Clairmont executives have garnered a 37.34% IRR on realized Co-GP investments.
  • Attractive Investment Niche – Clairmont specializes in making Co-General Partner equity investments alongside best-in-class commercial real sponsors and elite institutional capital partners in major U.S. and select international markets.

Clairmont Service Partners


  • Fund Administrator


  • Fund Counsel


  • Fund Auditor


  • Custodian Bank

Access Fund Service Provider


  • Administrative, Tax and Accounting Services

Why Invest Through a Fund

  • FAVORABLE FINANCING

    Clairmont will take advantage of a historically low interest rates and favorable financing terms at a time when basic SFR investment fundamentals are showing continued strength.

  • INSTITUTIONAL OVERSIGHT

    As an institutional investment manager, Clairmont will review every aspect and decision related to the acquisition, finance and ongoing operations of the properties.

  • PRUDENT DIVERSIFICATION

    At completion, Fund III will own 47 investments with exposure to 6 defensive asset classes, 17 states, 21 elite sponsor partners, and 26 blue-chip Institutional LPs off whom Clairmont promotes.

  • PROVEN TRACK RECORD

    CityVest searches for institutional investment managers who have a strong historical track record with IRR returns well over 10%.

Why Real Estate?

  • Diversification

    Real estate investments are considered a non-correlated alternative asset class.

  • Cash Flow & Appreciation

    Stabilized real estate generally benefits from regular and predictable cash flow.

  • Low Interest Rate

    Historically low interest rates may allow real estate to generate higher cash flows.

  • Income Tax Treatment

    Ordinary income can be minimized through the use of an accelerated depreciation strategy that may generate passive losses.

  • Hedge Against Inflation

    Rents, land values and replacement costs typically move upward with inflation.

  • Multiple Exit Strategies

    Real estate assets can be disposed of through individual or portfolio liquidations, asset refinancing, mergers, or a “roll up” through a portfolio capitalization.

Clairmont Overview & Strategy

Clairmont is a boutique real estate private equity firm focused exclusively on "Co-GP” stakes. Partnering with the nation’s most elite operators/sponsors and renowned institutional equity partners, Clairmont seeks highly attractive, asymmetric risk-adjusted returns by investing with the risk profile and downside exposure of an institutional “LP” but the return potential of a “GP”. Specific emphasis is placed on defensively-positioned, ‘market inelastic’ asset classes such as Student Housing, Senior Housing, Industrial and Multifamily (while prudently avoiding hospitality, retail, malls, condo and office), and investing with low leverage and highly solvent, patient capital partners including Pension Funds, and Insurance Companies. Clairmont invests at the asset level (rather than entity level) of specific transactions, offering a clear path to liquidity and allowing for rigorous qualification of each project.

The General Partner (“GP”) segment of the equity capital stack in an institutional real estate deal, and its economic benefits, is rarely available to outside investors. Fund III seeks to deliver superior, risk-adjusted returns by providing access to this equity tranche, with specific focus on:

  • Defensively-positioned asset classes with stable demand drivers and
  • Strategic alignment with veteran sponsorship and institutional LPs

Clairmont’s unique ability to capitalize on this niche market enables investors to participate in the sponsor’s disproportionate profit-sharing mechanism, known as the “promote” or “carried interest”. The promote acts as an additional incentive payable to the GP for exceeding pre-defined performance benchmarks over a project’s lifecycle. While the GP may only be required to contribute 5% or 10% of a project’s required equity (see graphic below), it stands to earn a much greater portion of the project’s returns upon successful execution of the business plan, creating significant alpha or performance differential when compared to Limited Partner (“LP”) returns.

By investing in the GP entity and participating in the promote, investors in Fund III are afforded the opportunity to generate superior, risk-adjusted returns and unparalleled sponsor, asset class, business plan, and geographic diversification, while limiting downside returns to those of its institutional LP counterparts.

Summary of Fund III Investment Criteria

Clairmont GP Fund III LP invests in the General Partnership (“GP”) interests of high-quality real estate assets in primary and secondary markets nationwide. Investment opportunities are sourced utilizing a network of relationships built by the firm’s executives. Each investment opportunity is thoroughly analyzed and submitted to Clairmont’s Investment Committee for unanimous approval prior to issuing commitment.

  • Asset Criteria

    Business Plan
    Core-Plus, Value-Add, and Development

    Product Type
    Student Housing, Multifamily, Industrial, Senior Housing (CCRC, IL, MC, AL, SNF) Self-Storage, Medical Office, Hospitality (LS, SS)

    Property Quality
    A to C+ with encouraging operating history

    Location Quality
    A to B- submarkets

  • Financial Criteria

    Projected Hold Period
    24 to 84 Months (2 to 7 Years)

    Targeted Clairmont Return
    25% + IRR (subject to hold period)

    Targeted Clairmont Equity Multiple
    2.25× + (subject to hold duration)

  • Debt Criteria

    Loan Term
    2 to 10 Years (contingent upon business plan and featuring exit optionality)

    Loan-to-Value
    50% to 85% of acquisition price

    Loan-to-Cost
    50% to 80% of total capitalization

    Fund-Level Leverage
    None

Strategy Advantages and Opportunities

  • Unique Access - Provides unique access to the economic benefits of the GP, a tranche of the capital stack rarely available to investors.
  • Institutional Quality - Offers access to institutional quality assets, sponsorship, structuring and capital partners.
  • Unparalleled Diversification - Provides unparalleled sponsor, asset class, business plan, and geographic diversification by leveraging smaller equity commitments in institutional-sized projects. (On average, Clairmont represents 5% -10% of the equity in each project)
  • Promote Participation - Creates outsized risk-adjusted returns by unlocking significant alpha (“a”) to traditional LP returns via participation in the GP’s promote.
  • Downside Protection - CCG co-investment structure limits investor downside to the equivalent return of the elite institutional LPs it invests alongside.
  • Yield & Appreciation – Offers attractive combination of current yield (est. 6% to 8% upon full deployment) and material capital appreciation.
  • Outsized Returns – Investments projected to create 20% + internal rate of return (“IRR”) to investors.

Thematic Investment Strategy

Clairmont GP Fund III places specific emphasis on defensively-positioned asset classes exhibiting resilient and sustainable demand drivers, creating "market inelasticity" during turbulent and stable economic cycles alike. CCG GP Fund III’s thematic investment strategy results in concentration bias toward development and value-add acquisition strategies with a predisposition towards four key asset classes: Senior Housing (CCRC, IL, AL, MC, SNF), Student Housing, Industrial/Logistics, and Workforce Housing. CCG fundamentally believes in making investments where the path to value creation is evident, serving to create insulation against market stagnation or softening. Clairmont’s thematic investment strategy, combined with its promote participation, alignment with elite institutional LPs (running little to no risk of insolvency) as well as low / moderate leverage (historically 63%) creates the risk mitigation elixir critical in today's market environment.

  • Business Plan

    Provide investors with a real estate focused investment opportunity that combines income, principal investment growth, and capital preservation through Development and Value-Add Investments.

  • Asset Class

    Asset class idetification is a key fund design feature. We specifically focus on four key asset classes: Senior Housing, Student Housing, Industrial/Logistics and Workforce Housing.

  • Strategy

    Our investment strategy involves combining promote participation, elite sponsor alignment and low leveraging of numerous institutional quality investments to maximize returns and minimize risk.

Geographic and Asset Diversification

Clairmont’s Investment Strategy Provides Unparalleled Diversification


Recession Resistant Asset Classes



  • Student Housing

    • College attendance has increased in every recession since 1960.
    • Enrollment in post-secodary education grew at the greatest rate since 1981 after the 2008 recession (4.7% in 2008 and 6.3% in 2009)


  • Multi-Family

    • Multifamily outperformed other major asset classes during and after the 2008-2009 recession in three ways:
      • 1. Lowest level of rent decline
      • 2. Fastest recovery to pre-recession peaks
      • 3. Longest post-recession period of rent growth


  • Senior Housing

    • Annual net absorption and rent growth remained positive for senior housing throughout the Great Recession of 2008.
    • By 2030, the 65+ cohort will represent 21% of the total U.S. population.


  • Industrial

    • Industrial & Logistics real estate is more resistant to cycles than ever before with E-commerce demand consistently increasing.
    • E-Commerce now represents more than 10% of total retail sales, creating more demand for industrial facilities and distribution centers to improve logistics.

Access to Best-In-Class Sponsors

Key Benefits For Q4 2020 Subscriptions

  • Shortened Duration

    Late stage investors benefit from expected average hold period < 3.5 yrs.

  • High Visibility

    Unique insight into +/- 100% of portfolio construction. Rare in 'blind pool’ funds.

  • Significant Diversification

    Fund III expects to deploy $50 million across 46 investment positions, offering diversification by Asset Class, Sponsor, Geography, Business Plan and Institutional LP, which should mitigate risk and dampen volatility.

  • Efficient Capital Call/Deploymentt

    +/- 75% of new investors’ capital is expected to be called and deployed at close (December 2020). 100% should be called by Q2 2021. No protracted draw down schedule.

  • Low Leverage

    Estimated 61% portfolio LTC at completion.

  • Asymmetric Returns

    Participation in “Promote” while strictly maintaining LP-level risk exposure allows for outsized risk-adjusted returns.

Current Market Environment and Covid-19 Impact

As reflected in Clairmont’s “COVID Report Card”, the Fund III portfolio has performed remarkably well amidst current market turbulence. Clairmont's management team has no reason to mark down valuation on any of our current holdings and, in several instances, sees opportunity for outperformance relative to projections as a result of the dislocation. Notable metrics include:

  • Student Housing Developments

    Clairmont has five (5) Student Housing developments delivered in Fall 2020 school year. All 5 projects delivered on time, on budget and have average occupancy of 95% at opening.

  • Capital Calls

    100% of Fund capital is invested in projects that remain on budget and without risk of additional capital calls.

  • Occupancy

    Occupancy metrics remain healthy and, on average, above pro forma expectations.

  • Construction Completion

    Average construction completion date in the portfolio is Q4 2021, largely insulating us from COVID-related operating obstacles and delivering against less competitive supply.

  • Reduced Costs

    Construction hard costs reducing by 3% - 8%, creating additional outperformance opportunity.


Clairmont Due Diligence Report

Prepared By: Buttonwood Investment Services LLC - November 13, 2020

Building Wealth In Real Estate - CityVest

CityVest requires that all Investment Fund Managers/General Partners meet certain minimum criteria when being considered for inclusion on the CityVest platform. Buttonwood Investment Services LLC has been engaged by CityVest to conduct a third party due diligence verification on the following aspects of the investment fund manager:

  • Current property portfolio
  • Principal experience
  • Manager/GP Co-investment
  • Property sales/dispositions
  • Principal succession
  • Background check/review

Buttonwood has verified the due diligence information and below is a review of the findings.

Building Wealth In Real Estate - CityVest

Clairmont Capital Group
1925 Century Park East
Suite 1700
Los Angeles, CA 90067
310.560.4183

https://www.clairmontcapitalgroup.com/

Real Estate Acquisition Experience

Buttonwood has verified that the Fund Principals have a minimum level of $50 million of combined lifetime acquisition cost as a General Partner or Managing Member of an entity that owns real estate. Applicable experience includes those situations where the Principals had equity invested and at risk in the project(s) and day-to-day involvement in the management and ownership of the project(s).

Criteria Has Been Met

Current Portfolio Value:

$36,500,000 equity
$2,938,000,000 of total capitalization

Value of Property Dispositions:

$20,000,000 of equity
$380,000,000 of total capitalization

Failed Project Investor Equity Lost:

$0

Real Estate Principal Experience

Buttonwood has verified that the Fund Principals have a minimum level of combined lifetime experience in the real estate field. The Combined Minimum Principal Experience is 15 Years and a Principal is defined as someone who was a General Partner or Managing Member of an ownership entity with real cash equity invested, and at risk, in the project and with day-to-day involvement in ownership.

35+ Years Combined

True Principal Experience

35+ Years

Years as Current Company

15 Years

Investment Fund Governance

Buttonwood has verified that the Investment Fund Governance follows the highest level of fidiciary standards by utilizing an independant audiotr as well as a third-party fund administrator.

Criteria Has Been Met

Fund Auditor

Validated

Fund Administrator

Validated

Key-Man Succession Insurance

Buttonwood has verified that the Fund maintains a “key man” insurance policy on at least one or more key members of Manager/General Partner management. This requirement is in place to ensure that the Managing entity has the financial resources to maintain operations in the event that a key Principal is incapacitated.

Policies must have the following provisions:
• The policy names the Manager/General Partner or the underlying project entity as the entity to be paid upon exercise of the policy.
• The policy has a minimum coverage amount of $1 Million.

Criteria is Pending

Policy Payable Party

Pending
Policy will be in place 01/31/2021

Policy Coverage

Pending
Policy will be in place 01/31/2021

Manager Co-Investment

Buttonwood has verified that the Fund Partners invests in the funds they are offering alongside their investors.

Investment requirements include:
• An investment of at least 2.50% of the total targeted raise amount; or
• A minimum investment of $500,000.

Criteria Has Been Met

Manager Co-investment

Validated

Manager Co-investment Amount

4.0% co-invest
up to $2.0 million

Public Information Search

Buttonwood has reviewed publicly available information sources to confirm management identity and claims. Further, this review is conducted to help identify any objectionable material that may demonstrate character issues or that may impact the Manager’s ability to successfully manage real estate assets.

Criteria Has Been Met

Adverse Reporting/Articles/Findings

Web search for relevant news articles and reporting on any sponsor or manager activities that may impact or inform their ability to manage real estate.

None Reported

Adverse Social Media Profiles

Search of common social media platforms for profiles that contain offensive content or material relevant to ones moral turpitude.

None Reported

LinkedIn Search

Search of LinkedIn to confirm professional experience conforms with reported experience.

Validated

FINRA Broker-Check

Buttonwood has reviewed FINRA databases to confirm that all Principals are screened to identify any past disciplinary actions related to employment at brokerage firms.

No Actions

SEC Filings

Buttonwood has reviewed all filings made by the manager to the SEC. The Securities and Exchange Commission (SEC) requires certain financial statements and other formal documents to be submitted to them regularly. Public companies, certain company insiders–which the SEC defines as officers, directors, major stockholders, and employees of a public company–and broker-dealers are required by the SEC to make regular filings. Financial professionals and investors rely on the information that the SEC makes public in order to make prudent decisions when they are evaluating a company for investment purposes.

None Reported

Management Background Review

Buttonwood conducted a background search on the primary principals of the Manager/General Partner as well as on the primary entities. This background check is designed to reveal liens, claims, judgements, bankruptcies, criminal convictions, lawsuits, etc.

No Issues Found

Lawsuits

None Reported

Other Legal Matters Current or Pending

None Reported

Criminal Filings and Convictions

None Reported

Judgements and claims

None Reported

Bankruptcies

None Reported

Liens (greater than $10,000)

None Reported

UCC Defaults

None Reported

Buttonwood Diligence Disclaimer

This above Due Diligence Report including all information disclosed (“Report”) by Buttonwood Investment Services LLC is intended to be used for informational and discussion purposes only. Furthermore, this Report is not intended to cover all facets of the due diligence process that a potential investor may require and this Report is not designed to replace those due diligence efforts. This Report is simply designed to provide basic summary information pertaining to a Manager or General Partner and it should be noted that Buttonwood Investment Services is not involved in any decisions made by CityVest Capital Inc or the individual investor and makes no recommendations regarding specific investment opportunities. This report has been prepared for and is to be used exclusively by CityVest Capital Inc., unless as otherwise specifically indicated in the report.

Clairmont Fund Management Team

Clairmont has assembled a team of motivated real estate professionals with a combined 35+ years. Clairmont principals have exited 7 investments to date from their vintage Funds, generating a realized IRR of 37.34%** with equity multiple of 1.82x, on average hold period of 2.0 years.

  • Christian S. Wenger

    Christian S. Wenger

    Chief Executive Officer & Managing Principal

  • Christopher B. Schwanitz

    Christopher B. Schwanitz

    Chief Operating Officer & Principal

  • Jason A. Wilson

    Jason A. Wilson

    Chief Underwriting Officer & Managing Director

  • Michael S. Rosenblum

    Michael S. Rosenblum

    Advisory Board/Counsel

Chief Executive Officer & Managing Principal

Mr. Wenger is CEO and Managing Principal of Clairmont Capital Group and is Chairman of the Investment Committee. Mr. Wenger has over 12 years of experience executing investments in real estate (most notably spending the past 5.5 years focused solely on sourcing, structuring and executing GP co-investment opportunities for his current and prior Funds) and publicly traded securities and has sourced and negotiated more than $1.85 billion in structured capital for owners and operators throughout the United States and abroad. Mr. Wenger is also a principal of a Los Angeles-based real estate company focusing on entitlement and development of Small Lot Subdivisions and multifamily communities in Southern California. In that capacity, he has overseen over $115 Million worth of successful acquisition and development initiatives.

Prior to Founding Clairmont Capital Group, Mr. Wenger Co-Founded and served as President and Investment Committee member of Township Capital and pornolio managed thirty-seven (37) GP equity co-investments across four (4) investment vehicles with approximately $2.5 Billion of notional real estate exposure and fourteen (14) unique operator partnerships. Prior to that, Mr. Wenger held senior positions within the Private Wealth Management divisions of JPMorgan, Merrill Lynch and Jefferies & Co. Mr. Wenger received a Bachelor of Arts degree in Economics from the University of California, Los Angeles.

He currently resides in Bel Air, California is a member of Young Presidents Organization (YPO), and, as an Eagle Scout, maintains active involvement with the Boy Scouts of America organization.

Chief OperaLng Officer & Principal

Mr. Schwanitz is a Principal of Clairmont Capital Group, sits on the investment committee, and is responsible for originating new investment opportunities on behalf of the Fund as well as overseeing and asset managing all development-related investment exposure. Mr. Schwanitz brings more than ten (10) years of real estate finance experience to Clairmont, including originating, evaluating and executing on north of $100 Million of structured capital for personal acquisition and development projects in Los Angeles, CA.

Prior to joining Clairmont Capital, Mr. Schwanitz held Analyst and Associate positions with Genton Barth Real Estate Group and Watt Commercial Real Estate Group, respectively.

Mr. Schwanitz received a Bachelor of Arts degree in Economics and Applied Mathematics from the University of California, Los Angeles. He currently resides in Silverlake, California and enjoys golfing, hiking, traveling and tennis.

Chief Underwriting Officer & Managing Director

Mr. Wilson is Managing Director of Clairmont Capital Group. Mr. Wilson has over 18 years of experience executing public and private equity and debt transactions, mergers and acquisitions, valuations, deal structuring, business strategy and operations in real estate and investment banking. Mr. Wilson has been involved in both public and private real estate transactions with an aggregate transaction value exceeding $13.8 billion.

Prior to joining Clairmont Capital Group, Mr. Wilson served as Senior Vice President and Head of Capital Markets for a real estate development company based in California where he raised and structured the company’s LP and GP capital for its $200 million hotel joint venture while also sourcing and evaluating its investment opportunities. Prior, Mr. Wilson was co-founder and Senior Managing Director of HOA Capital Advisors, LLC, where he was integral in developing a niche program to purchase and monetize non-performing debt in the homeowner and condo owner association space as well as raising $1.0 billion in joint venture investment capital. Additionally, Mr. Wilson has been involved in several landmark real estate transactions and held various positions within the real estate investment banking groups at Cohen & Steers, Raymond James, FBR Capital Markets, Prudential Securities, The Carlton Group and Skyway Capital Partners.

Mr. Wilson received a Bachelor of Science degree in Operations Research from the United States Military Academy at West Point, and prior to beginning his career in finance, he served the United States Army as a light infantry officer in the 101st Airborne. He currently resides in Tampa, Florida.

Advisory Board/Counsel

Mr. Rosenblum serves on the Advisory Board at Clairmont Capital Group providing valuable legal counsel. Mr. Rosenblum is the principal of the Law Offices of Michael S. Rosenblum, which represents a diverse assortment of private business entities, from investment, hedge and real estate funds to prominent entrepreneurs, in numerous complex corporate, securities and real estate law makers. With over 30 years of experience as an attorney and in the field of finance and investment, Mr. Rosenblum is a valuable legal and business adviser for Clairmont Capital Group. In addition to his work as an attorney, Mr. Rosenblum has been a real estate investor in Southern California and South Florida. In 2011 he formed a real estate fund to invest in the depressed residential real estate market, primarily in Broward and Dade Counties.

Mr. Rosenblum earned his Bachelor of Science degree in Economics from the Wharton School, University of Pennsylvania, and received his J.D. from University of California, Los Angeles Law School. He is an active member of Penn and Wharton Alumni networks, and is a member of the Real Estate and Construction Cabinet of the United Jewish Fund. Mr. Rosenblum is based in Los Angeles, California.

  • Sandor Valner

    Sandor Valner

    Advisory Board

  • Dan Joseph

    Dan Joseph

    Advisory Board

  • Steven R. Wenger

    Steven R. Wenger

    Principal & Chairman of Limited Partner Advisory Board

  • Nicholas J. Burk

    Nicholas J. Burk

    Associate Vice President

Advisory Board

Sandor Valner has over 30 years of investment banking, merchant banking and private equity experience. Currently Mr. Valner is an investor and an investment advisor. He was a partner in Walton Street Capital, a global private equity real estate asset manager, where he co-founded the Latin American operations. Previous to this, he served as a partner at VALOR and EMVA, two investment banking boutiques which focused on real estate and financial restructurings. Before that, he was the country head of Credit Suisse for Mexico and before he worked in the corporate finance and M&A groups of JP Morgan in New York. Mr. Valner has led more than $20bn of capital raising, M&A and real estate investment transactions.

Mr. Valner obtained and MBA degree from the Stanford Graduate School of Business and an MS degree in Engineering with concentration in Artificial Intelligence from Stanford Graduate School of Engineering. He has served on numerous private, public, charitable and family office boards and is an active member of the Young President ́s Organization. He has a series 7 and a series 66 securities licenses.

Mr. Valner lives with his wife Monica in Los Angeles. Their children a4end Stanford University and Washington University, St. Louis. He enjoys classical music and participating in triathlons.

Advisory Board

Dan is the President of Corridor Ventures, and a co-founder of Corridor’s property and asset management divisions. Dan has primary responsibility for the direction, strategy, and financing of the company’s overall activities, which includes developing new relationships and growth initiatives that fit with the company’s long-term strategy to create a deeply skilled, multi-faceted real estate enterprise with client relationships and assets across the United States.

Dan has a diverse background as a real estate entrepreneur and investor, having started four companies in the past 20 years, as well as investing in many transactions, both in real estate and across the private equity landscape. Over the course of his career, he has developed particular expertise in structuring, negotiating, and closing acquisitions, and in raising capital. He has been involved in the acquisition and management of over 30 companies and properties, raising hundreds of millions in equity and debt.

Dan holds an MBA from Wharton and a BA from Tufts University. He is a member of the Connecticut chapter of YPO, and sits on the board of The Cobb School Montessori in Simsbury, CT.

Principal & Chairman of Limited Partner Advisory Board

Mr. Wenger is a Principal of Clairmont Capital Group and serves as Chairman of the Firm’s Limited Partner Advisory Committee, offering counsel and guidance from his more than 42 years of corporate business and investment experience across multiple industries.

Most notably, Mr. Wenger served as Co-Founder and COO of UK-based Altair Filter Technology Group Limited, a renowned provider of inlet filtration solutions for the power generation, oil and gas and marine industries.

In 2006, Altair, in partnership with Gresham Private Equity, was acquired by GE Energy.

Marketing Operations Manager

Mr. Burk is Associate Vice President of Clairmont Capital Group. He is responsible for developing and managing investor relationships, supporting the oversight of asset management operations, as well as sourcing and analyzing investment opportunities on behalf of the Fund vehicles.

Prior to joining Clairmont Capital, Mr. Burk served as the Project Manager for George Raveling, the International Director of Basketball for Nike, Inc. Nick managed all projects, investments, and day-to-day operations related to Mr. Raveling. His diverse experience provides a unique perspective within Clairmont, as well as creates additional conduits of capital sources. Mr. Burk also previously worked at TownshipCapital, a real estate firm founded by Clairmont's CEO to focus on “Co-GP” Equity investments. At Township, Mr. Burk conducted capital markets research and assisted in establishing relationships of both capital providers and operators which led to the successful execution of Township’s first fund. Additionally, Mr. Burk operates his own real estate investment company, concentrated on the acquisition of distressed single-family homes, apartments and condominiums in greater Los Angeles.

Mr. Burk received a Bachelor of Science degree in Business Administration from the University of Southern California. He currently resides in Los Angeles, California and enjoys playing basketball, traveling, and fine cigars.

Strategic Partnership

In 2018, Clairmont formed a strategic partnership with Sherman Financial Group (SFG), which has over 20 years investment experience having deployed over $12 billion in capital. SFG has committed $100 million of separately managed account equity to Co-GP investments with Clairmont. This strategic partnership with SFG lends powerful infrastructure resources, intellectual capital, depth of experience, and market knowledge to Clairmont. The separate account with SFG adds a significant stamp of institutional approval to Clairmont’s Co-GP investment strategy. Clairmont investors benefit from the partnership through additional transaction exposure, and Clairmont’s ability to invest alongside the separate account in deals that would otherwise be too large for Clairmont.

Clairmont Track Record

Clairmont Properties

Currently Owned Properties

As of November 15, 2020 the Clairmont GP Fund III LP is currently 73% Deployed with 40 Investments and 52 Assets. The table below outlines our current investments.

Clairmont Track Record

* Remaining Duration assumes an investment in Fund III as of October 2020.
** Returns are based on original project start date (T=0). They are not adjusted for CCG's opportunistic purchase of 20-asset portfolio approximately 15 months into their investment cycle on average, offering significantly greater return potential based on the shortened duration.

THE COURTS OF BENT TREE

Dallas, Texas

fund

Investment Summary

CCG GP Fund III has made a GP equity co-investment alongside an elite multifamily operator/developer and Pension Fund Advisor to acquire (off-market) a 1991-vintage workforce housing value-add community outside of Dallas, Texas. The project consists of 168, attractively large units (1,212 SF on average) and is uniquely low-density relative to comparable properties as it is spread across more than 11 acres. The asset boasts premiere amenities including a business center, fitness center, resort-style swimming pool, outdoor courtyard and pergola, and a central mail center. The venture is currently executing a valueadd strategy and the sponsor has composed a $1.38 million CapEx budget to renovate all 168 units within 24 months. The scope of improvements include updated bathrooms, kitchens, living rooms, bedrooms, exteriors, and common areas. A rental premium of $210-$275 per unit is expected to be achieved post renovation (new leases have since been signed at $250/mo. increase for improved units, representing 28% ROI). Even with conservative senior leverage of 62% Loan-to-Cost, the asset is expected to generate attractive average cash-on-cash yield of 10.10% over the 5-year hold period. The Pension Fund Advisor is contributing 90% of the required equity and Clairmont committed to invest 80% of the required 10% GP tranche. Clairmont is also entitled to receive 40% of the sponsor’s promote to generate superior risk-adjusted returns. The table to the left outlines gross return expectations at each investment tier as underwritten.

Investment Summary

Location

Dallas, TX

Project Cost

$36,621,465

Total Equity

$11,621,465

CCG Equity

$1,045,932

Assett Class

Workforce Housing

Purchase Date

December 2018

Business Plan

Value-Add

Limited Partner

Cadence Capital

Underwritten Duration

42 months

Remaining Duration

18 months

Limited Partner ("LP")(1,2)
Projected IRR/Equity Multiple

14.13%
1.54x

Clairmontr ("CCG")(1,2)
Projected IRR/Equity Multiple

20.55%
1.85x

CCG vs LP

6.42%
0.31x


(*) Fund returns and yields are not guaranteed.

(1) Return Projections based on 5-year hold period and drawn from sponsor’s proforma model.

(2) IRR & Equity Multiple metrics are calculated gross of any fund-level promote or management fees.

PARCEL T

San Franciso, California

fund

Investment Summary

Clairmont successfully structured a GP equity co-investment position for the development of a fully-entitled, 28-unit, Transit Oriented Development (”TOD”) in a prime submarket of San Francisco, California. Once complete, the Class-A multifamily rental with 2,760 Square Feet of ground floor retail will be 5 stories tall and include a mix of Studios and 2 bedroom units with an average size of 623 square feet. The venture intends to capitalize on strong submarket fundamentals including 98% mid-rise multifamily occupancy. Clairmont was attracted to the developer's particularly intimate knowledge of the Submarket, having developed over 122 units within 5 blocks of the subject property.

Most attractively, Clairmont negotiated to have its investment capital enter the deal, at cost basis, nearly two years after the sponsor’s original land acquisition (acquired from the city after winning a competitive RFP), eliminating all entitlement risk without foregoing any return on investment. A renowned Private Equity firm is providing 95% of the common equity with a flat 80% / 20% split of profits (18% effec=ve promote) upon sale. Clairmont is providing 90% of the sponsor’s required 5% co-invest and is entitled to receive 50% of the developer’s promote to drive outsized returns. The table below details gross return projections as underwritten.

Investment Summary

Location

San Franciso, CA

Project Cost

$22,983,255

Total Equity

$10,183,255

CCG Equity

$458,246

Assett Class

Multi-Family

Purchase Date

July 2019

Business Plan

Development

Limited Partner

Lighthouse Partners

Underwritten Duration

30 months

Remaining Duration

13 months

Limited Partner ("LP")(1,2)
Projected IRR/Equity Multiple

21.69%
1.57x

Clairmontr ("CCG")(1,2)
Projected IRR/Equity Multiple

51.72%
2.62x

CCG vs LP

30.03%
1.05x


(*) Fund returns and yields are not guaranteed.

(1) Return Projec=ons based on 3-year hold period and drawn from sponsor’s proforma model.

(2) IRR & Equity Mul=ple metrics are calculated gross of any fund-level promote or management fees.

Clairmont Access Fund LLC

The following Clairmont Access Fund documents are available to view:

  • Investor Document Package Clairmont Access Fund

  • Entity Investor Document Package Clairmont Access Fund

  • Clairmont Wire Instructions

  • Accredited Investor
    Verification Letter

Clairmont GP Fund III LP Terms

The following Clairmont Fund Documents are available to view:

  • Executive Summary

    The Presentation provides an overview of Clairmont GP Fund III LP and investing in student housing and multifamily communities.

  • Quick Overview

    This document contains a one page summary of the Clairmont GP Fund III LP.

  • Commonly Asked Questions

    This document contains the most commonly asked questions investors have about Clairmont GP Fund III LP.

  • PPM

    The Private Placement Memorandum (PPM) for prospective investors for the Clairmont GP Fund III LP.

  • Subscription Agreement

    The Subscription Agreement for prospective investors for the Clairmont GP Fund III LP.

  • Limited Partner Agreement

    The Amended and restated Limited Partnership Agreement for the Clairmont GP Fund III LP.

  • Current Holdings

    The document is a short summary of the current holdings of Clairmont GP Fund III LP.

Clairmont Access Fund LLC Terms

Investment Summary

Fund

Clairmont Access Fund LLC (the “Access Fund”)

Fund Managing Member

CV Manager LLC

Technology Fee

The Access Fund will pay CV Marketplace 0.75% (75 basis points) of the Fund capital per year beginning in the second year for annual Investment Dashboard technology and information functions such as investment reporting and other communication. *Tech Fee is eliminated in the first year.

Administrative Expenses

The Access Fund will pay CV Marketplace LLC $500 per investor per annum for managing annual investment accounting and distributions.

Organizational Expenses

The Access Fund will pay CV Manager a one-time fixed fee of $50,000 for organizational and formation expenses.

Minimum Investment Amount

$25,000, subject to change in select cases

Distributions

Quarterly, paid out of distributions as received from Clairmont

Targeted Fund Amount

Estimated $3,000,000

Offering Close Date

Documentation, Accredited Status and Wire Transfer must be completed by the Closing Date of December 31, 2020

Term

4 remaining years to December 2024, plus a possible extension of up to 2 years.

Investment Return

The Access Fund has negotiated a side-letter agreement with Clairmont GP Fund III LP to receive a 14% preferred return, followed by 80% of the remaining profit. The Access Fund will then distribute 100% of such amounts received after fees to the Access Fund investors pro rata to their respective capital account.

Fund Administration/Accounting

Assure Services will be paid at closing for accounting, tax and other administration services for the life of the fund. Assure will complete annual financial statement and composite state tax filings for up to $3,000 per year.

Clairmont GP Fund III LP Terms

Investment Summary

Targeted Return

25%+ IRR

Preferred Annual Return

Access Fund:
14% Preferred Return with distributions paid quarterly from cash flow

Direct Investors:
8% Preferred Return with distributions paid quarterly from cash flow

Management Fee

2%

Profit Split after Preferred Return

80% to Investors / 20% to Clairmont Management

Fund Term

4 remaining years to December 2024, plus a possible extension of up to 2 years. Documents state 6 years from the Initial Close which occurred in December 2018.

Minimum Investment

$250,000

Target Fund Size

$50,000,000

Important Disclosure Statement for Clairmont:

An investment in the units of Clairmont is speculative and risky. No assurance can be given that investors will realize their investment objectives or will realize a substantial return (if any) on their investment. Investors should be able to bear the complete loss of their investment in Clairmont. For this reason, each prospective subscriber for Clairmont should carefully read Clairmont’s Private Placement Memorandum (“Memorandum”) and all Exhibits to the Memorandum. Each prospective subscriber should consult with his attorneys, accountants, and business advisors prior to making an investment in Clairmont. Only qualified, eligible investors may invest in Clairmont.

Clairmont will invest in multifamily, residential real estate, which includes apartment and student housing. As such, investment in the Units does not constitute a diversified investment. Clairmont intends to diversify its investments by investing in multiple multifamily residential properties throughout the United States. Clairmont intends to hold approximately 20 properties with no single investment representing more than 20% of Clairmont's total invested capital. Anticipated portfolio characteristics may differ from actual portfolio holdings. An inability to raise substantial funds in this Offering could also result in substantial limitations on Clairmont’s ability to achieve a diversified portfolio of assets.

Because this is a blind pool offering, investors will not have the opportunity to evaluate investments before Clairmont makes them, which makes an investment in Clairmont more speculative. The investors must rely on the management of Clairmont and to make all investment decisions. There can be no assurances or guarantees that Clairmont’s investment objectives will be realized or Clairmont’s investment strategy will prove successful.

An investment in Clairmont may be affected by a number of factors beyond the control of the management of Clairmont that will affect the value of Clairmont’s investments. These include risks typically associated with investments in residential real estate that produce income such as increased vacancy rates, re-letting risk, or decreased rental rates, adverse changes in general economic conditions or local conditions that may reduce the demand for multifamily residential properties, changes in the demand for or supply of competing properties in an area, unanticipated holding costs, the availability and cost of necessary utilities and services, changes in real estate tax rates and other operating expenses, changes in governmental rules and fiscal policies, changes in zoning and other land use regulations, environmental risks such as mold contamination or environmental claims that could be made against Clairmont, and natural disasters, most of which are not covered by insurance.

Clairmont will operate in a highly competitive market for investment opportunities. Clairmont's profitability depends, in large part, on the ability to acquire profitable investments. In doing so, Clairmont will compete with numerous other entities and individuals engaged in real estate investment activities, many of which have greater financial, technical, marketing, and other resources than Clairmont. Poor performance of the investment management in selecting investments for Clairmont, or poor performance of any investment, could adversely affect the profitability of Clairmont and the overall return to the investors.

Clairmont may make investments through a joint venture or co-investment arrangement. Such arrangements may be on terms that limit Clairmont’s ability to control the investments and to receive returns on those investments.

Adverse economic conditions may adversely affect the ability of Clairmont to obtain financing. Unfavorable financing terms or the inability to obtain financing would adversely affect the operating results of Clairmont. The high level of leverage on the properties increases the debt service risks and the likelihood of foreclosure. Clairmont's borrowing of capital increases the risks of adverse effects on Clairmont's financial condition.

The investment manager of Clairmont has a limited operating history and track record upon which prospective investors may base an evaluation of its likely performance. Prospective investors should not rely on the past success of the investment manager's affiliates. The success of Clairmont is significantly dependent upon the expertise of certain investment or support personnel and any future unavailability of their services could have an adverse impact on the Clairmont’s performance. The General Partner and a majority of Limited Partners may agree to amend the Clairmont Agreement, which could be adverse to some limited partners. It is impossible to predict accurately the results from an investment in the Clairmont because of general risks associated with the complete reliance on the General Partner and its affiliates to identify and negotiate the investments to be acquired by Clairmont.

The proposed method of operation of Clairmont creates certain inherent conflicts of interest among the Clairmont, Clairmont, the General Partner and their affiliates. The liability of the investment manager is limited. Clairmont and its affiliates may compete with Clairmont's investments and may provide services to the Clairmont or Property Owners. Clairmont may make direct investments in affiliates of the investment manager. The investment manager may have conflicting fiduciary obligations with respect to the allocation of investment opportunities. The investment manager and its affiliates will receive compensation and reimbursements. Certain compensation to the investment manager and its affiliates has not been established by arms-length agreement. Clairmont's and the investment manager's officers and agents will engage in other management activities. A single legal counsel will represent Clairmont, the investment manager, Clairmont and their affiliates.

The investment manager may have conflicting fiduciary obligations when making investments through a joint venture or co-investment with an affiliate of the investment manager. These transactions may not be the result of arm's-length negotiations and may involve conflicts between the Clairmont's interests and the interests of the investment manager and its affiliates. The investment manager will use reasonable efforts to ensure that the terms and conditions of such transactions will be no more favorable to the affiliate than could be obtained by arms-length negotiations with an independent third party.

An investment in Clairmont is illiquid. No public or other market will develop for the Units. These securities are subject to restrictions on transferability and resale and may not be transferred or resold except as permitted under the Securities Act of 1933, as amended and the applicable State securities laws, pursuant to registration or exemption there from. Prospective investors should be aware that they will be required to bear the financial risks of any investment in these securities for an indefinite period of time.

Units of Clairmont are offered without registration under any securities laws due to a reliance on an available exemption. Although, Clairmont’s offering documents are not reviewed or approved by federal or state regulators, Clairmont must comply with a variety of legal and compliance requirements. Failure to comply with the requirements for a private offering exemption would adversely affect Clairmont. Maintenance of an Investment Company Act exemption may impose limits on Clairmont's operations, and if Clairmont becomes subject to the Act, Clairmont would likely be unable to continue its business.

To the extent Fund cash flow permits, the investment manager intends to make monthly distributions to the Limited Partners, however, the investment manager may reinvest all or a portion of proceeds received from CityVest on or before December 31 2020, rather than using such proceeds to make distributions to the Limited Partners. Prospective investors should be aware that the sole source of cash from which Clairmont will make cash distributions on the Units will be from revenues received from investments made by Clairmont. No assurance can be made that Clairmont will receive sufficient return on its investments to enable it to make any distributions to the Limited Partners.

Certain statements included in this presentation constitute "forward-looking statements" and are subject to a number of significant risks and uncertainties. Any such forward-looking statements contained herein should not be relied upon as predictions of future events. Certain such forward-looking statements can be identified by the use of forward-looking terminology such as "believes," "expects," "may," "will," "could" "would likely," "should," "seeks," "approximately," "intends," "plans," "estimates," "anticipates," "continue" or the negative thereof or other variations thereof or comparable terminology, or by discussions of strategy, plans or intentions. Such forward-looking statements are subject to numerous risks and are necessarily dependent on assumptions, data or methods that may be incorrect or imprecise and may not be realized. In that regard, actual results may differ materially from those in forward-looking statements. As a result of the foregoing, no assurances can be or are given as to future results of operations or financial condition of Clairmont.

Clairmont’s investment approach has complex tax implications for investors. These ramifications should be reviewed carefully and applied to each investor’s individual circumstances. Clairmont may involve structures or strategies that may cause delays in important tax information being sent to investors. You should obtain investment and tax advice from your advisers before deciding to invest.

This material includes certain statements, estimates and projections of Clairmont with respect to the anticipated future performance of Clairmont. Such statements, estimates and projections reflect various assumptions of the investment manager that may or may not prove to be correct, and no assurance can be made that Clairmont can or will attain such results. Nothing contained herein is or should be relied on as a promise or representations as to the future performance of Clairmont.

These materials (the “Presentation”) have been provided for informational purposes only and neither constitutes the Memorandum of Clairmont nor provide a comprehensive disclosure of both the terms of investment and risk disclosures associated with an investment in Clairmont. This Presentation is not a complete summary of the terms of Clairmont or the background information of persons associated with the Investment Manager and is qualified in its entirety by, and must be read in conjunction with, the more detailed information included in the Memorandum, the governing documents of Clairmont, the Subscription Agreement of Clairmont and other related documentation.

This Presentation, furnished on a confidential basis to the recipient, is neither an offer to sell nor a solicitation of any offer to buy any securities, investment products or investment advisory services, including units of Clairmont. This presentation is not an advertisement and is not intended for public use or distribution and is intended exclusively for the use of the person to whom it has been delivered. An Offer may be made only by means of the Memorandum. This sales literature must be accompanied or preceded by that memorandum and read in conjunction therewith to fully understand the implications and risks of the securities to which it relates.

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Value Add

Risk of Loss
Medium 1
Leverage
60-75% 2
Occupancy Rate
Less than 80% 2
Strategy
Heavy Renovations​/Major Retenanting 2
Stable Tenants
Few​/None 2
Hold Period
1-3 Years 2

1 The Risk of Loss is relative to other investment profiles. There is always a risk of total loss.

2 These are typical attributes for this profile of investment and may or may not represent this particular investment.

Single-Family

A single family residence (SFR) is the most common type of home which is a single family detached, stand-alone structure with its own lot intended for one family.

Target Return (IRR)

The estimated annual return which includes both the annual cashflow and the sale proceeds.

Target Annual Cash

The estimated average percentage annual cash return from the investment.

Estimated Hold

Estimated hold period from investment to realization.

Preferred Return

The preferred return or “pref” is a percentage cumulative return on initial investment that investors must attain prior to the investment manager’s participation in the profits.

Fund Size

Trion Fund is raising a maximum of $20,000,000