PRINCIPLES

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

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

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

Asia:

But with closed-end funds, in volatile markets like Asia, what matters in the short run is timing and luck

The West:

In relatively stable Western markets, what matters is investment skill

Dow Jones Index

Hang Seng Index

Source: Yahoo Finance, as of October 2023

However, with valuation discipline and

holding power in the face of crisis,

Asian volatility provides fantastic opportunities to make money

Bigger, Better Exits

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

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