Clairvue Capital Partners is a real estate private equity fund manager focused on investing in recapitalizations and secondary purchases in the private equity real estate (“PERE”) sector, a strategy the Firm refers to as Specified Indirect investing. The Fund’s Specified Indirect investments will typically be made in the form of recapitalizations of, and secondary investments in private equity real estate funds, portfolios, operating companies, private REITs and other types of private, multi-asset vehicles (“PERE Vehicles”).
- PERE Vehicle Recapitalizations: Clairvue provides fresh capital to PERE Vehicles to meet a variety of their liquidity needs including paying off or paying down maturing debt, financing discounted loan payoffs, covering leasing costs and capital expenditures and, in certain circumstances, providing a limited amount of growth capital to PERE Vehicles. PERE recapitalizations are typically structured as high-yield subordinated debt or preferred equity.
- PERE Secondaries: Clairvue may also purchase equity interests in PERE Vehicles from existing investors. Sellers of secondaries typically seek early liquidity to reduce exposure to real estate as an asset class, to reallocate their PERE exposure to different managers or markets, to fund their other unrelated capital requirements, or to comply with changing regulations.
Clairvue believes that Specified Indirect investments in PERE Vehicles are attractive because they possess the following attributes:
- Specified: The properties underlying investments are clearly specified and can be thoroughly underwritten, providing a clear view into opaque structures.
- Indirect: Owning indirect investments in vehicles as opposed to owning real estate directly allows strong managers to continue to control, manage and add-value to their assets.
- PERE Vehicles: Investing in multi-asset vehicles rather than single properties helps to mitigate risk for Clairvue’s investors by creating diversification across property types, geography, managers and vintage years.
