Company

Company

Performance Reports

2020

Resources > Company

---

We at Wealth Migrate adhere to our values of trust, transparency, and alignment and are thus excited to share an overview of our portfolio performance for the 2020 calendar year.

We are happy to report that all ten deals included in our 2020 portfolio were well in line with their projected returns for the year. Despite all the challenges that 2020 presented, we are grateful that none of our portfolio deals showed any significant down-side deviations from their expected returns.

This report does not include any independent or white label deals as it focuses exclusively on our portfolio of deals that were active during 2020. Please note that for fair comparability to their projections, all returns displayed in this report were calculated on a pre-tax and pre-fee basis as declared by our various sponsors. This means that your personalized returns might differ slightly from the results shown below as no adjustments for tax nor transaction fees (including banking fees, processing fees, or other investor-facing fees) were accounted for in the returns stated below.

Wealth Migrate is pleased to report that half of our 2020 portfolio deals slightly outperformed their targets, while the remaining 50% produced returns that were either at or just below their annual targets. Our largest downside deviation for the year was a Value-Add offer, in terms of the deal’s risk profile, with only 63 basis points (bp) or 0.63% short of its projected annual return. Please note that this is still well within our acceptance criteria.

Portfolio Composition as at the end of 2020

As any investment entails a certain degree of risk, we specifically want to acknowledge our sponsors for the quality deals that they bring to our community. Although reasonable variations between the actual and targeted returns are present, we are grateful that our trusted sponsors were able to deliver on their forecasted returns, despite the difficult year that 2020 turned out to be.

We are proud to share a growing portfolio with our community, prospective investors, and shareholders

Portfolio Breakdown Per Sponsor

Orbvest:

All four of our USA-based Medical deals performed well and were in line with their projected returns for the year. Med-22 (core-risk profile) and Med-24 (core-plus-risk profile) both exceeded their targets, with 21bp and 14bp, respectively. Med-25 (core-plus-risk profile) and Med-26 (value-add-risk profile) performed slightly worse, but only missed their targets for the year with 26bp and 63bp, respectively. The performance of Med-26 was affected by delays in tenant installations during lockdown, while Med-25 faced delays in permit approvals required to complete its parking garage. Due to a few rental deferrals and the above-mentioned delays, Orbvest funded certain distributions from reserves. Although the parking garage has since been completed, Orbvest deemed it best to follow a more conservative distribution approach by delaying return ramp-ups until income improves and their reserves have been built up again. Orbvest is prioritizing its distribution waterfall in 2021 to resolve these temporary disruptions and catch up on all dividends in arrears.

IPS:

UGR267, a UK-based Multi-family deal with a core-risk profile, outperformed in all four quarters and exceeded its annual forecasted return with 51bp. All three of the flats forming part of this property are tenanted and all rental payments for the year are up to date.

Infiniti Investments:

Oklahoma Class B Portfolio, a USA-based Multi-family deal with a core-plus-risk profile, outperformed its annual expected return with 34bp. This outperformance was achieved during all four quarters of 2020.

Global Wealth Group:

The Global Wealth Group’s Convertible Debt Offering, which is a South African-based debt product with a core-plus-risk profile, started generating interest income during Q4 of 2020. This Convertible Debt Offering’s interest payments vary between 7% and 10% per annum, depending on the investment amounts and date of receipt thereof. While the majority of our 2020 investors earned 8% in annualized interest, a weighted-average return of 7.87% was derived for the year, after taking the relevant 7% interest-generating investments into account. Overall, this offering therefore met its 2020 target, and some investors are already earning up to 10% in annualized interest during Q1 of 2021, as agreed.

RB Care Homes:

Our RB Care Homes deals are UK-based, Senior Housing offerings with core-plus-risk profiles – consisting of two underlying properties namely, Danygraig and Glen Yr Afon (GYA). Kindly bear in mind that currency fluctuations between the GBP (earned) and USD (distributed) played a role in the distributions of these Age-Care offerings. Fortunately, the foreign exchange rate between the GBP and USD mostly played in favour of our investors’ returns.

Despite this forex effect, the combined returns were still in line with the deals’ projected 10% returns. In the diagram to the right, kindly note the time-and-money-weighted-average returns where GYA’s two raises were consolidated.

2020 Quarterly Breakdown:

Below are visual representations of each quarter’s annualized performance per deal:

Five of the nine deals forming part of our Q1 portfolio exceeded their estimated annualized returns. During Q2 and Q3, our portfolio of deals continued to outperform, with the exception of Med-26. During Q4, the Convertible Debt Product was added to our portfolio of deals and achieved its expected returns for the quarter. Although the portfolio in Q4 marginally missed its overall target with 24bp, half of the deals included in the portfolio still outperformed.

Disclaimer

The content and information being shared by Wealth Migrate via this presentation are for information purposes only and should not be construed, under any circumstances, by implication or otherwise, as advice of any kind or nature, or as an offer to sell or a solicitation to buy or sell or trade in any commodities, securities, or currencies herein named. Information is obtained from sources believed to be reliable but is in no way guaranteed. No guarantee of any kind is implied or possible where projections of future conditions are attempted.

In no event should the content of the information being shared be construed as an express or implied promise, guarantee or implication by or from Wealth Migrate or any of its officers, directors, employees, affiliates or other agents that you will profit or that losses can or will be limited in any manner whatsoever. Any investments made in light of these ideas, opinions, and/or forecasts, expressed or implied herein, are committed at your own risk. Wealth Migrate is not an investment advisor, workshops are for informational purposes only and not a recommendation to invest in any real estate or to buy or sell any securities and it is the responsibility of each investor to obtain prior independent financial advice prior to making any investment.

Attendees agree to hold harmless the presenter, publisher and or Wealth Migrate personally and collectively for any loss, if any, that may result from the use of the information shared. Past performance may not be indicative of future results. Future results can be dramatically different from the opinions expressed. Past performance does not guarantee future performance.

Please obtain the advice of a competent financial advisor before investing in any financial instrument or product. It is strongly recommended that you consult with a licensed financial professional before using any information provided during this workshop. Any market data or news commentary used here is for illustrative and informational purposes only. Although it may provide information relating to investment ideas and the buying or selling of securities, investment in real estate, you should not construe anything as legal, tax, investment, financial or any other type of advice.

Company

How we select and designate our sponsors

Resources > Company

---

A Sponsor is a real estate developer, operator, or capital provider. The Sponsor is responsible for finding, acquiring, and managing a deal through the life cycle of the project. They contribute to the equity, raise additional private equity capital from institutions or high net worth investors, and secure any additional leverage. The sponsor is responsible for the performance of the investment, and for reporting to investors and distributing returns

Our marketplace lists investment opportunities (“deals”) from a wide range of real estate investment firms, developers, and capital providers (‘Sponsors’). They all share our core requirements of extensive management expertise, niche sector experience and a focus on protecting investor capital. However, not all Sponsors are equal in terms of size, years of operating and assets under management (AUM).

To assist our investors in making decisions that suit their personal portfolio strategies, we designate our sponsors into four categories: Emerging, Developed, Established and Tenured.

Each sponsor is assessed against a range of criteria to determine their designation for our platform.

Minimum Sponsor requirements

All sponsors must meet our core minimum requirements:

• At least 20 years combined management experience in a niche real estate sector and managing private equity investors funds in projects.
• A direct investment into each project of at least 5% of the equity.
• A proven commitment to protecting investor funds.
• Pass our sponsor level Financial Viability due diligence.

Further Due Diligence on Sponsors:

Sponsors that pass our initial screening process are then subject to thorough due diligence, in adherence to the UK Data Protection Act, before being approved by our Investment Committee.

All investments pertain some level of risk. We attempt to identify key risk factors on both our sponsors and deals, in order to mitigate unnecessary risks on behalf of our investors. Wealth Migrate

[Wealth Migrate] therefore requires all potential sponsors to complete or furnish the below as a part of our due diligence:

• Background Checks – on both the business and its principals
• Business Verifications – on Official Government Registries and Bureaus
• Track Records – Spot audits to review the performance of past projects
• Financial Solvency – Signed off by a verified Auditor
• Reference Checks – Financial, legal, commercial, and investor based
• Senior Management’s experience & qualifications – Including CVs of their Acquisitions Teams & Investment Committee Members
• Business Model Review – Proof of previously successful projects & exits
• Corporate Governance – Verify that Annual Filings / Tax Submissions are all up to date
• Online Presence – In-depth web searches, social media, news, and online reviews

Designating Sponsors

Management Team Experience – This is the main designation determinant. We ensure that each sponsor’s principals have the necessary qualifications and years of combined management experience in the deal-type area. We look for knowledgeable teams with strong leadership experience and a proven track record.

Age of Operations – Age of a specific company falls subordinate to management experience, as we believe the team behind a sponsor is the main driver of its success.

• Although we list companies that have been operating for less than 3 years, their management teams will still need a minimum of 20 years’ experience to be approved as a sponsor on our platform.
• Sponsors in the designation with lower operating ages therefore do not necessarily have a true start-up’s risk, since newly registered entities could still be backed by an established business model and an experienced management team that drives that new brand.

Assets under Management (AUM) – The more advanced designations have to meet the minimum set limits of Assets Under Management, while the lowest designation COULD meet its set minimum.

Supplementary Criteria – We realize that not everything is cookie cutter perfect in life. Where the above 3 criteria don’t overlap to fit a specific box, we assign a ranking to additional key factors. These ranked values are then summed and placed into a matrix to determine the final category for the related sponsor.

• We look for niche experts, not generalists. The less general, the higher the ranking.
• We look for sponsors who invest more of their own capital alongside other investors into the opportunities they offer. This ensures additional comfort in the quality of each deal that is made available. The more cash a sponsor invests into their projects, the higher their ranking.
• Accuracy of Projected Returns – During a new sponsor’s DD process, we perform random spot checks on 2 or 3 of their previous deals (case studies) to see how their business model was implemented and to evaluate the success rate of their deals and offerings. We also look at a few of their deal-reports to review the accuracy of their return estimations, compared against the actual returns of deals.