STRATEGY
EXS employs a highly differentiated strategy & structure
People & Platforms, not just assets
As real estate is the ultimate local / specialized game, EXS partners with expert management teams into fully-aligned platforms rather than compete for individual real estate assets
Contrarian & Counter-cyclical
Especially in Asia, timing is everything. But many private equity funds are raised (and deployed) at the top of the market; since we are investing substantial amounts of our own capital and don’t charge commitment fees (that pressure putting money to work), EXS takes a much more contrarian, counter-cyclical approach
Investment Structures for Asian Volatility
Rather than forming typical PE / RE closed-end blind pool funds (which tend to fail in Asia’s periodic crisis), EXS sponsors longer-term, multi-stage capital structures with the ability to survive and thrive through Asian volatility
The West:
In relatively stable Western markets, what matters is investment skill
However, with valuation discipline and
holding power in the face of crisis,
Asian volatility provides fantastic opportunities to make money
Asia:
But with closed-end funds, in volatile markets like Asia, what matters in the short run is timing and luck
Dow Jones Index
Hang Seng Index
Source: Yahoo Finance, as of October 2023
Skin in the game
Typically, EXS invests far more of our own capital and resources into each platform than a traditional PE firm; EXS charges management fees and other economics only on invested rather than committed capital, resulting in less fee drag and greater alignment of interests with our investor partners
Alignment & Transparency
Since EXS invests “deal-by-deal” at the platform level, with full visibility into the strategy, management and underlying projects, EXS investors have greater understanding and transparency compared to typical blind pool private equity funds
Our multi-asset, multi-stage platforms can be built to a much larger scale, and thus achieving multiple higher value realizations, including portfolio sales, refinancing and strategic partnerships as well as IPO and/or REIT listings, can be expected
Bigger, Better Exits
Further Fundraising:
i.e. Public Company
Bond Offering
IPO
Company's Value Increases with Each Step ...
Series C:
i.e. Bond & Warrants
Series B:
i.e. Redeemable
Convertible Bond
... with Decreasing Costs of Capital
Series A:
i.e. Redeemable
Convertible Bond