There are many locally entrenched operators and sector specialists with strong track records that operate below the institutional investor radar, firms that possess rich cultural diversity and entrepreneurial spirit — proven drivers of success. For many such firms, access to institutional capital has been limited to one-off transactions with allocator funds or a fairly small universe of emerging manager programs that invest primarily in commingled funds with structures that often impose untenable burdens on skilled, nimble local operators.

Ironically, comingled fund structures have even proven problematic for institutional investors who see value in partnering directly with local firms to pursue tailored real estate investment strategies, but may not have adequate resources internally to execute what many recognize to be resource-intensive strategies. For instance, many institutional investors also appreciate that most operators and developers simply lack the infrastructure and imbedded governance processes that institutional investors require which adds to the amount of management attention required.

For more than 10 years, Belay’s seasoned investment team has identified market inefficiencies amidst a competitive landscape that have led to compelling investment opportunities. Key to our success has been partnering with high quality operators and developers who are deeply entrenched in their local markets.

In an environment where deal-by-deal capital is abundant, operators who lack pre-arranged equity capital continue to lose out when competing for investment opportunities, regardless of their stellar reputations and natural first-mover advantage. Many of these groups are willing to provide deal-flow exclusivity in exchange for programmatic capital as long as it is structured appropriately.

Structuring successful non-discretionary programmatic joint venture partnerships must strike a balance between appropriate controls and execution support. Belay’s investment team collaborates with each partner on all investment activities, maintaining active oversight throughout each investment’s holding period and term of the partnership.

Belay adds value through the investment and asset management phases by actively mentoring joint venture operating partners in institutional best practices, across all aspects of the investment and management process. While primarily intended to protect investor capital and ensure successful execution of strategies, the benefits to operating partners accrue exponentially. Ultimately, Belay’s asset management and mentoring activities support the growth and development of each partner’s business platforms, which further strengthens asset-level and portfolio-level performance.