Beyond IRR — Avoiding Common Pitfalls for Effective and Meaningful Deal Evaluation.
Investors, executives and analyst alike, commonly rely on the internal rate of return (IRR) calculation to assess a project’s yield and compare the relative attractiveness of an investment. The challenge, however, is that there are many factors that can influence a project’s value that may not be captured accurately by the IRR calculation.
Upon closer examination and disaggregation, an investor may come to realise that one fund may have a significantly higher fee structure, the other may be woefully tax inefficient and there may also be risks that weren’t factored into the initial comparative assessment. Depending solely on the IRR can negatively impact the deal evaluation and due diligence process.
- Critical success factors for an effective due diligence process
- Strategies to overcome fee bleed and identify tax inefficiency
- Common red flags and other challenges when assessing an investment opportunity
Executive Vice President Chief Investment Officer
Fulcrum Equities / Swig Equities, LLC. Swig Equities, LLC
Paul Sygrove serves as Executive Vice President and Chief Investment Officer for Fulcrum Equities / Swig Equities, LLC. Swig Equities, LLC is the Investment Advisor to Fulcrum Equities (SFO) of Kent M. Swig of the real estate family Swig Company (SFO) in San Francisco. Swig Equities is a real estate development, investment and management firm based in New York City with offices in San Francisco. The firm is an active purchaser and developer of prime residential and commercial buildings as well as operating companies and securities. Over the past years, Swig Equities has purchased under the direction of Mr Sygrove $3. Billion of properties totaling over 4 million square feet off commercial office buildings and several residential buildings.
Mr. Sygrove is actively involved in identifying and evaluating development and acquisition opportunities for the firm, including the responsibility to provide for the financial structuring, arranging, and negotiating of all debt and equity requirements.
Mr. Sygrove has over 30 years of experience in all aspects of the real estate industry including Asset Management, Business Development, Building Management and Operations, Commercial Leasing, Investment Sales and Dispositions, Real Estate Advisory Financial Services, Fundraising, Institutional, Private Placement and Investment Banking experience.
Chief Investment Officer
Clark Cheng, CFA, FRM, CAIA joined Merrimac in2014 and is the Chief Investment Officer. Merrimac is a large single family office with investments in hedge funds, private equity, venture capital andreal estate. Prior to Merrimac, he was responsible for leading the alternative investment research teamin the Americas for HSBC’s Alternative Investment Group which had $60B in assetsboth discretionary and advisory mandates at its peak. Before joining HSBC, heperformed hedge fund research at Guggenheim Partners and Morgan Stanley between 2002 and 2005. Prior to joining Morgan Stanley, he worked at Credit Suisse First Boston’s equity research department in 2001. Prior to that, he spent six years building and establishing West Coast Economics. Mr. Chengholds the Chartered Financial Analyst, Financial Risk Manager and Chartered Alternative Investment Analyst designations. He holds a Masters Degree in Business Administration from Duke University and a Bachelors of Arts Degree in Business/Economics and Psychology from UCLA. He has also completed his coursework towards his Masters Degree in Psychology from California State University, Los Angeles.
Owned Outcomes, Inc
Anita Pramoda serves as the Chairperson of the Board of Directors for the United States Federal Reserve Bank of San Francisco. Ms. Pramoda is CEO of Owned Outcomes, Inc., a software company providing analytical help to healthcare providers and payors as they seek financial sustainability in addition to clinical outcomes in patient care. She also serves as an executive advisor to Technology Crossover Ventures and as a board director at Health Catalyst (Nasdaq: HCAT), and Dupage Medical Group . Anita previously served as the CFO of Epic Systems Corporation. Anita earned her MBA from The Wharton School of Business at the University of Pennsylvania.
Sorelle Entertainment and Sorelle Hospitality
Carlos Ruisanchez is the co-founder of Sorelle Capital, Sorelle Entertainment and Sorelle Hospitality, a series of firms focused on investing in and helping grow companies with entrepreneurs in hospitality sectors and related real estate ventures.
Prior to Sorelle, he served as President & Chief Financial Officer of Pinnacle Entertainment, Inc. (NASDAQ: PNK), a leading regional gaming entertainment company, until its sale in October 2018. Carlos joined Pinnacle in August 2008 as the Executive Vice President, Strategic Planning and Development. He became Pinnacle’s Chief Financial Officer in 2011, President & Chief Financial Officer in 2013, and Board Member in 2016.
Prior to joining Pinnacle, Carlos worked at the investment banking firm Bear, Stearns & Co. since 1997 through 2008. He served as Senior Managing Director responsible for corporate clients in the gaming, lodging and leisure industries, as well as financial sponsor banking relationships.
Carlos is a member of the Board of Directors of the Cedar Fair Entertainment Company. Cedar Fair is one of the largest regional amusement-resort operators in the world which owns and operates 11 amusement parks, including its flagship park, Cedar Point, along with four outdoor water parks, one indoor water park and four hotels.
Co-Founder & Managing
The Calida Group
Douglas Eisner is Co-Founder and Managing Director of The Calida Group, a leading developer, investor, and operator of multifamily real estate properties in the western United States. Founded in 2007, the principals have developed or acquired more than 16,000 multifamily units, and its senior management combines over 100 years of real estate experience. Calida invests roughly $1 billion annually across three primary strategies (Development, Value-Add Acquisitions and Core-Plus Acquisitions) on behalf of a series of discretionary commingled funds serving the family office and ultra-high net worth communities, as well as forming partnerships with many of the nation’s largest financial institutions.
Mr. Eisner is primarily responsible for the strategic planning and growth of the company. Mr. Eisner oversees all capital markets activities, including project level debt and equity placement, and fund formation. Additionally, Mr. Eisner oversees the marketing efforts for the company, and is credited with growing the Elysian Living™ platform from a single property into the iconic lifestyle brand it is today. Prior to forming The Calida Group in 2007, Mr. Eisner was a partner at Alliance Residential Company and worked in the capital transactions department of Lend Lease Real Estate Investments (purchased by Morgan Stanley). Mr. Eisner graduated Summa Cum Laude from the University of Pennsylvania with a Bachelor of Arts in Economics and a Bachelor of Applied Science in Systems Engineering. He is a member of Young Presidents Organization.