Private Equity

• Primary Market Research – AURA’s bottom-up approach is based on primary market research to evaluate the performance of a specific asset in its particular location and submarket.  AURA also devotes substantial resources to understanding top-down macro issues.  However, AURA believes the best decisions are made with local intelligence.
• Emphasis on Fundamentals – REAP’s successful track record has been built on careful assessment of fundamentals affecting each asset, paired with a commitment to pursuing compelling strategies, skilled partners, and favorable terms for each REAP investment.
• Commitment to Diversification – Low to negative correlations between real estate and natural resources sectors, as well as a healthy geographic and asset category mix within each sector, have created substantial diversification benefits for the REAP program.
• IRR Focus – Since its inception in 2002, the REAP program has been focused on internal rate of return. 

Investment Strategy

Commingled Fund LP Interests

Numerous commingled fund investors are seeking to exit commitments in order to meet liquidity needs, relieve capital constraints, avoid future capital calls, or re-balance portfolios.  Meanwhile, prospective buyers face daunting underwriting hurdles such as limited property information, an inability to negotiate fund terms, and potential resistance from fund managers.  This has created an environment that strongly favors buyers who are able to overcome the barriers.  AURA is well positioned to do so.

General Partner Investments
During the real asset boom of the mid-2000s, an unprecedented number of commingled funds were launched.  In some cases, these funds now recognize that additional resources may be required for those funds to survive.  In other cases, GP's are looking for institutional co-sponsors for new funds.  AURA is well suited to identify, evaluate, negotiate, and execute these opportunities.

Investment Tactics

Commingled Funds
Previous REAP funds have made commitments to more than 30 commingled funds. As a result, AURA has distinct advantages over other prospective buyers, including:

• Detailed information on the structure, assets, liabilities, people, history and prospects for each of these funds.
• Direct lines of communication with other fund investors about their desire to sell, and in many cases rights of first offer and/or refusal from those investors planning to do so.
• An established relationship with fund general partners, facilitating a smoother transaction.

In-House Underwriting & Monitoring
Since 2002, several thousand commingled fund and joint venture opportunities have been evaluated on behalf of previous REAP funds.  During this period, AURA developed a rigorous partnership due diligence process that draws on its extensive research, valuation, analytical, legal and accounting resources.  Consequently, AURA is well equipped to evaluate, negotiate and execute the complex combination of legal and financial rights and obligations assumed by a buyer of partnership interests.