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.
|Sponsor Designation||Management Experience||Company's Operating Age||Assets under management AUM|
|Tenured||50+ years||15+ years||$1 Billion +|
|Established||40+ years||7-15 years||$500 Million +|
|Developed||30+ years||3-6 years||$200 Million +|
|Emerging||20+ years||Less than 3 years||Less than $200 Million|
All sponsors must meet our core minimum requirements:
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:
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.
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.