Lotus Club: Private Investment Update Q2-2018

 

LGA private investments continue to deliver increasing distributions and asset values for our growing clientele.

Few highlights for Q2:

  • We had a successful exit on a golf course investment in Houston from 5 years ago, with the recapitalization of the company + increase in value delivering nearly 100% returns!
  • We completed the first raise ($9.3MM) and capital call ($7.5MM) into our LGA IncomePlus Fund, and have invested nearly all of called capital.

The machine keeps chugging forward and growing momentum!

Our Q1/18 positive returns versus a negative-returning public market was strong confirmation for investors regarding the stability and consistency of these private investments.

LGA IncomePlus Fund – Mini Update (Second Capital Raise late June)!

We remain highly focused on the LGA IncomePlus Fund as the best way for us to efficiently source, negotiate, and make new investments for clients in 2018.

In doing so, we recently hired Jon Bui as Director of Business Development, and we are also looking to extend invites to two potential new Investment Committee Members.

Finally, we are making very good strides in developing new direct channels in pre-leased real estate development (in the fund now) and life settlements (working towards a 2H/18 timeline for a new LGA fund).

At this point, we are averaging $270K invested per slot, and are confident we will overachieve our initial targets of $15-18MM total raise. Overachieving this goal will go a long way towards maximizing scale efficiencies, keeping costs low, and delivering higher returns to investors.

If you haven’t invested yet, please reach out to your Advisor to see if you are qualified.  Initial investors may also add to their previous commitment…so this could be another consideration for current participants who want more exposure.

Fun story: A couple of weeks ago a potential investor looked us up, spoke on the phone for a couple of hours, and then flew up from Texas a week later to see us in Denver.  Apparently, word is spreading about our burgeoning program.

We only have you all to humbly thank and appreciate for your continued trust in the work we are doing.  Our goal is to continue negotiating access, delivering consistency and returns, and innovating the industry on your behalf.  A heartfelt thank you to you all!

June 30th is our 2nd close – please reach out to us if you would like to get invested.

 Program Highlights:
  • 94 Club Members
  • 631 Placements
  • $68.2 MM invested
  • $5.6 MM annual increase (Yield+NAV Change)*

* LotusGroup now manages over $139 million in assets across both private and public strategies

This does not include the additional embedded return realized at many of LGA’s investments exits

By |2018-06-01T16:28:46+00:00May 31st, 2018|Investment Strategy, Lotus Club|

About the Author:

Louis Frank