PaxCap’s investment tenets are the foundation of our private equity operating strategies. These tenets include the following: a disorganized market creates opportunity; risk mitigation is essential; focused knowledge is power; disciplined, systematized operating processes are essential; decisions must be research justified; and market cycles are to be embraced, but not relied upon.
We leverage our extensive network of global relationships to seek out and find opportunities below replacement costs that offer advantageous risk/reward profiles. These special situations usually involve one or more of these facets of asset distress: financial, operational, and/or physical.
More specifically, we search for these situations:
- Liquidity is inadequate and financing is prohibitive
- Financial institution’s balance sheet is strained, and is disposing of assets to restore capital reserves
and increase liquidity
- Business or individual is insolvent
- Equity and debt investments in value-oriented real estate assets
- Individual distressed bank loans secured by real estate
- Distressed CMBS and RMBS securities
- Real estate held by banks and corporations that need capital
- Investments in real estate-related corporations
- Assets held in bankruptcy and receivership
- Properties in loan default and subject to foreclosure proceedings
- Non-performing, real estate-secured notes
Each opportunity is evaluated based on research-justified underwriting. We validate asset value and our ability to increase it. Our hands-on management creates value by recapitalization, operating enhancements, physical property upgrades and asset management. Our outcome-centric process includes iterative assessment of exit strategies.