Once In A Decade Opportunity: 12% Preferred Return, Cash Flow and Instant Diversification With a Single Investment
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PROJECTED FUND RETURNS*
2.98x
Net Equity Multiple
20%+
Net IRR
12%
Preferred Return
*Estimated predictions of performance are not based on actual investment results and are not guarantees of future results.
Why an Opportunity Fund?
A once-in-a-decade debt maturity event will lead to billions in upside for savvy investors
Opportunity in the Market
- $1.35 TRILLION in commercial debt is coming due within the next 24 months.
- Most debt coming due will have negative leverage (will not qualify for refinance due to increased interest rates).
- As of Q3 2023, distressed assets are up to $79.7B –with significant growth anticipated.
- Foreclosure filings have increased 18% YoY – a rate that is only expected to rise.
Opportunity for You
- Not since the Great Recession has there been such a massive opportunity to invest in distressed assets for excellent returns, cash flow and capital protection.
- Major institutions (Blackstone, KKR, etc.) are raising billions for distressed investments – but they can’t legally invest in the sub-$50M range…
- This creates tremendous opportunity for well-capitalized groups like Altus to invest for huge upside within the $5m-$35m range.
- You can immediately diversify into different geographies and asset types (debt and equity) for stable cash flow, coupled with home-run upside opportunities.
Altus Opportunity Fund Highlights
Experienced Sponsor: Altus has a track record that far exceeds many of its industry peers. Since 2011, Altus has achieved a deal-level 26.09% IRR across more than 40 SPE projects and multiple smaller funds. The goal of this Fund is to scale all of Altus’ collective experience into a vehicle that will provide enhanced investment efficiency.
12% Preferred Return: Investors of the Fund will accrue a 12% preferred return during the life of the Fund. By structuring the Fund with a 12% preferred return, Altus prioritizes the sponsor performance to ensure the commitment to delivering strong results to investors.
GP Co-Investments: Altus will allocate a portion of the Fund investments into GP positions in Altus controlled deals. This will allow the Fund to enjoy exposure to even greater upside potential by participating in General Partner (GP) promote structures that wouldn’t otherwise be available to investors.
Diversified Assets/Markets: Altus has built its portfolio in a variety of growth markets across the Western U.S., Sunbelt and Southeast regions. Additionally, Fund investors will gain diversified exposure to a variety of asset types and business strategies which have contributed to Altus’ success over the past two decades. 93% Investor Reinvestment Rate: Altus is humbled by the reinvestment rate of its investor community. Since company inception, Altus has had a 93% reinvestment rate among its investors and the Altus team works hard to nurture and preserve all its investor relationships.
Giving Back: Consistent with the Altus purpose statement ‘We Are Invested’, Altus will be donating 5% of its carried interest from the Fund to three exceptional non-profit organizations that support Altus’ philanthropic values. Early Fund Investors: Investor funds will be deployed on a first-come-first-serve basis. As a result, early investors will have their funds allocated to projects sooner and therefore, early funds will begin to accrue the 12% preferred return sooner.
Investment With a Purpose
Altus’ purpose statement is ‘We Are Invested’. Altus is invested in its team of professionals, its investor community, its residents and tenants, and charitable organizations. As part of that, Altus is committed to investing 5% of its sponsor promote from this Fund into charitable causes focused on children. This will not have any economic impact on investor returns, as these funds will be donated out of the Sponsor promote from the Fund.
The mission of St. Jude Children’s Research Hospital is to advance cures, and means of prevention, for pediatric catastrophic diseases through research and treatment. Consistent with the vision of founder Danny Thomas, no child is denied treatment based on race, religion or a family’s ability to pay.
Canine Companions is leading the service dog industry so our clients and their dogs can live with greater independence. We provide service dogs to adults, children and veterans with disabilities and facility dogs to professionals working in healthcare, criminal justice and educational settings. Since our founding in 1975, our dogs and all follow-up services are provided at no cost to our clients.
At Junior Achievement, we believe in “possible”. Each day, we work to help young people discover what’s possible in their lives. We do this by helping them connect what they learn in school, with life outside the classroom. We let them know it’s possible to invest in their future, to gain a better understanding of how the world works and to pursue their dreams.
FOR ADDITIONAL INFORMATION
Contact Us!
Forrest Jinks
Chief Executive Officer
(707) 932-5987
fjinks@altusequity.com
Chad Richards
VP of Investor Relations
(707) 227–4422
crichards@altusequity.com
James McGee
Director, Business Development
(619) 865-1551
jmcgee@altusequity.com
This presentation (this “Presentation”) has been prepared solely for, and is being delivered on a confidential basis to, a limited number of sophisticated prospective investors who may be considering an investment in Altus Opportunity Fund I (the “Fund”), as described herein. This Presentation does not constitute an offer to sell or a solicitation of an offer to purchase securities or interests (the “Interests”) in the Fund.
Any potential investment in the Fund will only be suitable for sophisticated investors and will require the financial ability and willingness to accept the risks and lack of liquidity that are characteristic of an investment in the Fund. Any investors in the Fund must be prepared to bear such risks for an extended period of time. This Presentation expresses no views as to the suitability of an investment in the Fund to the individual circumstances of any recipient.
The Interests have not been registered under the U.S. Securities Act of 1933, as amended (the “Securities Act”), the securities laws of any other state or the securities laws of any other jurisdiction, nor is such registration contemplated. The Interests will be offered and sold in the United States under the exemption provided by Section 4(a)(2) of the Securities Act and/or Regulation D promulgated thereunder and other exemptions of similar import in the laws of the states and jurisdictions where the Fund’s offering will be made. Unlike a mutual fund, the Fund will not be registered as an investment company under the Investment Company Act of 1940, as amended (the “Investment Company Act”). Consequently, investors will not be afforded the protections of the Investment Company Act. In accordance with the foregoing, the Interests are subject to restrictions on transferability and resale and may not be transferred or resold except as permitted under the Securities Act, the applicable state securities laws and the applicable laws of any other relevant jurisdiction pursuant to registration or exemption therefrom. In addition, this Presentation has only been prepared for a limited category of investors pursuant to an exemption under the Investment Company Act. In considering the prior performance information contained herein, prospective investors should bear in mind that past performance is not a guarantee, projection or prediction, and it is not necessarily indicative, of future results. There can be no assurance that the Fund will achieve comparable results or that the Fund will be able to implement its investment strategy or achieve its investment objectives.
This Presentation is qualified in its entirety by reference to the Confidential Private Placement Memorandum (the “Memorandum”), the Fund’s Operating Agreement, as amended from time to time, and the Fund’s Subscription Agreement related thereto (collectively, the “Offering Documents”). In the event of any inconsistency between this Presentation and the Offering Documents, the Offering Documents will control. No person has been authorized in connection with this offering to give any information or to make any representations other than as contained in this Presentation or the Offering Documents and, if given or made, such information or representation must not be relied upon as having been authorized by the Fund, the Fund’s investment manager Altus Equity Group Inc. (the “Investment Manager”) or the Investment Manager’s affiliates.
Statements in this Presentation are made as of the date hereof unless stated otherwise herein, and neither the delivery of this Presentation at any time, nor any sale hereunder, shall under any circumstances create an implication that the information contained herein is correct as of any time subsequent to such date. Certain information contained herein concerning economic trends and performance is based on or derived from information provided by independent third-party sources. The Investment Manager believes that such information is accurate and that the sources from which it has been obtained are reliable. The Investment Manager cannot guarantee the accuracy of such information, however, and has not independently verified the assumptions on which such information is based. The Investment Manager does not undertake to update this information, which is subject to change. Certain statements contained in this document, including without limitation, statements containing the words “believes,” “anticipates,” “intends,” “expects,” and words of similar import constitute “forward looking statements.” Additionally, any forecasts and estimates provided herein are forward looking statements. Such statements and other forward-looking statements are based on available information and the views of the Investment Manager as of the date hereof. Accordingly, such statements are inherently speculative as they are based on assumptions that may involve known and unknown risks and uncertainties. Actual results and events may differ materially from those in any forward-looking statements. Further, any opinions expressed are the current opinions of the Investment Manager
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