BUOYED BY POSITIVE INVESTOR SENTIMENT, THE GREAT FUND CLINCHES ITS FIRST CLOSE AT 75 PER CENT SUBSCRIPTION WITHIN A MONTH ON 31 MAY 2024

NEWS POINT HIGHLIGHTS

• The GREAT Fund is a global private equity real estate fund that seeks to create a diversified portfolio of real estate investments with an overall target net internal rate of return of 12 to 15 per cent over 5 years, including a projected 4 to 5 per cent cash yield to be distributed quarterly.
• The GREAT Fund capitalises on market demand-driven real estate asset classes by leveraging multiple established real estate managers in Asia-Pacific, Australia, the UK and US for investment across equity, mezzanine and debt capital opportunities.

SINGAPORE/WORLDWIDE, TUESDAY, 18 JUNE 2024 – Paragon Capital Management, a fast-growing bespoke asset management firm headquartered in Singapore, together with RealVantage, Asia’s leading, regulated real estate fractional investment platform, are pleased to jointly announce the formation of a consortium for the inaugural Global Real Estate Alternative and Tactical Fund (“GREAT Fund”, “Fund”). The GREAT Fund, with a target fund size of USD 50 million, completed its first close on 31 May 2024 with an overwhelming 75 per cent subscription volume within a month from launch, demonstrating strong investor commitment and interest.

The GREAT Fund is a global private equity real estate fund that seeks to create a diversified portfolio of real estate investments with an overall target net internal rate of return of 12 to 15 per cent over 5 years, including a projected 4 to 5 per cent cash yield to be distributed quarterly. The GREAT Fund capitalises on market demand-driven real estate asset classes by leveraging multiple established real estate managers in Asia-Pacific, Australia, the UK and US for investment across equity, mezzanine and debt capital opportunities.

Diversified investment strategy

The GREAT Fund aims to invest in core-plus, value-add and opportunistic real estate asset classes focusing primarily on industrial, logistics, residential, retail, office and hospitality sectors. It also targets build-to-rent, healthcare, student accommodation, and elderly care sectors. The Fund plans to allocate investments towards development, upgrading and distressed property opportunities, as well as high-yielding debt opportunities, including senior and mezzanine loans, aiming for a 4 to 5 per cent cash yield. Driven by high interest rates and falling valuation, the GREAT Fund aims to also seek out distressed assets, with dislocation in pricing in the office and retail sectors.

Experienced leadership

The GREAT Fund is jointly conceived by Paul Lee, Co-Founder, CEO & CIO of Paragon Capital Management, and Keith Ong, Co-Founder and CEO of RealVantage. The Fund’s investment committee comprises both Paul and Keith, along with Beng Tiong Ng, Chairman of RealVantage who brings over 30 years of experience in real estate, finance, M&A and governance.

Paul Lee said: “We prioritise building long-term relationships with our clients and are committed to help them grow their wealth through research driven investment strategies. Real estate is a proven asset class that continues to outperform and provides growth opportunities as part of diversification. We are incredibly grateful to our investors for their unwavering support in our inaugural GREAT Fund. Despite economic uncertainties, there are clear signs of market dislocations in the real estate sector, presenting good value-entry positions. By optimising the strengths of both Paragon Capital Management’s established investment proficiency and RealVantage’s strong operating track record and expertise in the real estate investment space, we are confident in generating robust risk-adjusted returns for our investors.”

“I am deeply privileged to have Paragon Capital Management as our esteemed co-general partner for the GREAT Fund. With a proven track record in managing and growing wealth for its clients, this strategic partnership was naturally positioned for success,” states Keith Ong. “Despite a challenging fundraising environment, Paragon Capital Management and RealVantage have been able to raise capital for the GREAT Fund within a matter of weeks. The success of the first close is demonstrative of the trust we have built with our limited partners, to which we are grateful for their continued support. I look forward to future collaborations with Paragon Capital Management.”

The success of the GREAT Fund’s first close demonstrates the forward-thinking approach by the co-general partners to attract strong investor commitment and capitalize on promising market opportunities in the real estate space.

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About Paragon Capital Management:

Paragon Capital Management (“PCM”) is a boutique asset management firm with AUM in excess of SGD 1 billion. As a trusted partner, PCM delivers exceptional investment solutions and wealth management services to Accredited Investors, including institutional clients. The team seeks to provide tailored investment strategies that align with each of our clients’ unique financial goals.

The Paragon Alpha VCC, set up by PCM, runs three open-ended public market funds and two close-ended private market funds, namely: Paragon Alpha I (“PAF”), Paragon Income I (“PIF”), Paragon Systematic Advantage Global Equity (“SAGE”) Fund, Paragon Ventures I (“PVI”) and Global Real Estate Alternative & Tactical (“GREAT”) Fund. The public market funds allow clients to access a broad range of investment opportunities across different asset classes, including global equities and fixed income, while our early-stage VC fund, PVI focuses on identifying and nurturing promising startups with high growth potential. The GREAT fund aims to provide accredited investors with direct access to institutional quality properties in developed markets worldwide.

Over the years, PCM has consistently delivered strong investment performance, generating favourable returns for our esteemed clients.

For more info, please visit: https://www.paragoncapital.sg/

About RealVantage:

RealVantage is a leading Asia-Pacific online real estate co-investment platform.

Singapore-founded and -headquartered RealVantage is Asia-Pacific’s leading and fastest growing regulated fractional online real estate investment platform. RealVantage transforms the real estate investment landscape by empowering individuals to effortlessly build and diversify their global real estate portfolios. RealVantage investors get direct access to global institutional-grade property deals across developed markets, property types and investment strategies. Being a real estate-centred fractional investment platform, RealVantage offers only property investment products. RealVantage prioritises the offering of high quality deals over blockchain tokenisation.

RealVantage has an enviable track record. Among similar Asia-Pacific real estate investment platforms, RealVantage has chalked up one of the highest number of deals; and attained many successful realisations with no defaulted deals. Due to its growing reputation and faultless track record, RealVantage’s membership base is doubling every year since inception.

RealVantage collaborates with reputable operating partners such as developers and fund managers in developed real estate markets around the globe and provides them with capital market solutions. These partners include Greystar Real Estate Partners in USA, M7 in UK, and Australian-based Ashe Morgan and Centennial Property Group. Through RealVantage, these partners have been able to raise funds for different components of the capital stack for their projects – ranging from stretched senior debt, mezzanine debt to ordinary equity.

RealVantage has enabled its platform members to co-invest alongside institutional investors such as PIMCO, BentallGreenOak, PGIM and Schroders, to name a few. To date, RealVantage’s funded deals cover developed markets in Australia, Hong Kong SAR, Singapore, UK and USA. Members can expect to invest in deals from more developed markets around the globe in the near future.

RealVantage’s investors include family offices, high-net-worth individuals, accredited and professional investors, and mass affluential investors. A majority of RealVantage’s investors invest repeatedly in multiple deals, thus building up a global portfolio to suit their personal investment preferences and needs.

To allow its investors to build a meaningful and diversified portfolio, RealVantage has originated deals across many different property types, including residential, multi-family, hospitality, office, retail, medical, logistics and industrial. As an illustration, they can choose to blend lower-risk real estate secured debt deals with higher-return development deals so as to create a portfolio with recurring income and capital gains across multiple asset types and geographies.

RealVantage’s proprietary investment system and technology capabilities have enabled its investors to enjoy a seamless and user-friendly end-to-end journey, from onboarding to investment and divestment, along with a regular stream of property updates and portfolio reports.

RealVantage was co-founded by former C-suite investment management and technology executives Keith Ong and Mao Ching Foo, respectively, in April 2019. RealVantage is supported by a group of industry veterans forming its very own investment and advisory committees. They are former C-suite leaders from established global institutions including ARA Asset Management, GIC Real Estate, and Keppel Land. RealVantage is regulated by the Monetary Authority of Singapore with Capital Markets Services licence number 101156.

For more information, please visit: https://www.realvantage.co/

FOR MORE QUERIES OR TO ARRANGE FOR AN INTERVIEW, CONTACT:

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RealVantage

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