Investment Manager Selection and
The Due Diligence Process
Venturi Capital Advisors, Inc. works diligently to identify real estate asset managers possessing measureable skills and potential. Candidate investment managers are initially sourced through our proprietary database, strategic partners, long-standing relationships and referrals from other managers, service providers and other sources.
Venturi Capital Advisors, Inc. identifies and chooses to work with managers who have a demonstrated advantage derived from a specific, finely-tuned investment thesis. A manager's competitive advantage is typically driven by fundamental top-down and/or bottom-up research, qualitative and quantitative analysis of markets and real estate assets, relentless focus and hard work. The Firm seeks to avoid managers who depend exclusively on external research or those who employ homogenous, non-specific strategies, or who rely on excessive leverage or needlessly complex capital structures for their returns.
The Firm's due diligence process is rigorous and systematic. Due diligence is viewed as a mosaic where qualitative and quantitative information is assembled and analyzed. Issues such as manager reputation, integrity, personal commitment and potential conflicts of interest are assessed. How a manager's firm is organized, staffed and compensated are critically important factors in our assessment. We are mindful of the manager's investment as well as organizational skills. Our diligence may include a review and analysis of:
- Offering materials
- Operational capabilities
- Financial statements
- Tax filings/regulatory filings
- Performance verification (realized IRR, cash multiples)
- Manager/investment team meetings
- Reference and background checks (co-invest/jv partners, lenders, previous investors)
- Review and verification of transparency, audit quality, etc.
- Asset/portfolio review
- Performance attribution