Investment Portfolio

 

Investment Philosophy

The KGK Group, Inc. invests individual private equity in a diversified portfolio of commercial properties that strategically enhance the overall returns of the entire portfolio. Investors have an intermediate to long term view of their investment in the investment fund allowing the investment manager flexibility in being opportunistic in acquisitions and dispositions of property types based on their respective stages of the real estate cycle.

Investment objectives focus on modern portfolio theory, namely the best way to increase overall portfolio return is to reduce portfolio risk. Acquiring a mix of real estate assets with complimentary risk characteristics reduces overall risk and increases the dependability of future returns.

The investment strategy also incorporates the diversity of differing markets based on their economic position. Markets can be defined as being either Commodity (newer growth markets) or Constrained (established markets). By investing in both markets we are able to take advantage of growth as well as established markets to further diversify the investment portfolio.

Investment Criteria

Our fund seeks assets in the $1mm to $10mm price range that fit into our proprietary performance model. By acquiring assets of this size the funds portfolio is easier to diversify and limits competition from institutions who typically seek larger properties.

Investment in a variety of property types also allows the fund flexibility in being opportunistic in acquiring the right investments. Targeted property types include office, retail, apartments and industrial buildings.

We seek to leverage acquisitions with better than market LTV (Loan to Value) ratios preferring to take a conservative approach to financing. Our objective is to hold assets until value can be maximized. Our experience in managing and marketing the assets allows us to maximize returns.