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Prospect Capital, “Prospect Capital Convertible Preferred Stock and Priority Income Fund”<\/h4>\nMarch 10, 2021 | James Sprow | Blue Vault<\/p>\n
Prospect Capital, “Prospect Capital Convertible Preferred Stock and Priority Income Fund”<\/h4>\nGrier Eliasek, President and COO, Prospect Capital<\/p>\n
Prospect Capital<\/a>\u2019s preferred stock is the next generation of preferred offerings.\u00a0 Prospect Capital has been at it for 33 years and is far more diversified across the economy and industries and they sleep very well at night not being exposed to any one industry.\u00a0 They also eat their own cooking far more than other companies.\u00a0 Their managers have committed hundreds of millions to their funds.\u00a0 They not only stand to gain on the upside, but they also are at risk on the downside.\u00a0 They are <\/p>\n Bill Leitner, Managing Partner, Leitbox Partners<\/p>\n Ashley Compton, National Director-Self Storage Group, Colliers<\/p>\n Leitner and Compton discussed the current trends in self storage.\u00a0 In today\u2019s market, there is a surplus of cash chasing deals in the space, coming from big public REITs and private equity funds.\u00a0 Ashley mentioned the low capital costs of some of the big players, including Public Storage that recently issued debt at less than a 1% yield.\u00a0 Leitbox<\/a> has a long relationship with Protective Life, enabling them to meet the short timelines for financing new deals. Bill asked Ashley, \u201cHow varied now are the buyer profiles?\u201d\u00a0 Ashley:\u00a0 \u201cIt is extremely varied.\u00a0 It is as competitive as I\u2019ve seen in my career.\u00a0 In some cases, there is no time to get third-party due diligence done. You have to be in a strong cash position to be competitive in this market.\u201d According to Bill, they\u2019re seeing companies do an all-cash buy and then put debt on it after closing.\u00a0 Leitbox has been able to close quickly due to their relationship with a programmatic lender.<\/p>\n Bill also mentioned the automated self storage technology.\u00a0 Leitbox is currently doing their first fully-automated project in a small, vertical mixed-use deal.\u00a0 Automation can definitely benefit your bottom line and your exit strategy, according to Compton.<\/p>\n <\/p>\n Corey Maple, Chairman and CEO, Legendary Capital<\/p>\n Their primary objective is the preservation of capital. \u00a0Legendary Capital<\/a> is a leader in the hospitality sector, having survived the pandemic downturn in hotel occupancy and RevPAR by adjusting their strategy to appeal to remote office workers and lowering expenses.\u00a0 The results are impressive as they\u2019ve been able to bring occupancies back up and have not competed on price as many competitors have been forced to do.\u00a0 They have been able to maintain positive cash flow during the pandemic.\u00a0 From a regulatory standpoint, they can go up to 70% leverage, but they have leverage at a much lower level. <\/p>\n Keith Hall, Co-Founder, Pacific Oak Companies<\/a><\/p>\n Jeff Kremin, National Sales Manager, Pacific Oak Capital Markets<\/p>\n Hall spent some time explaining their focus on single family rentals (SFR), which is in the early stages of growth and consolidation and offers investors significant upside.\u00a0 It has the potential to be the \u201cnew multifamily\u201d sector in size and breadth.\u00a0 The U.S. housing market is a $33.6 trillion market, equal to the combined GDP of the U.S. and China.\u00a0 Approximately 22.3 million homes in the U.S. are occupied by renters.\u00a0 Institutional ownership of SFR is less than 2% of SFR.\u00a0 SFR is ripe for consolidation driven by economies of scale of larger owners.\u00a0 \u00a0<\/p>\n <\/p>\n Chris Shaw, Head of Retail Alternatives, SS&C ALPS<\/p>\n Eric Carlson, Vice President, Goldman Sachs<\/p>\n Brian Neal, Vice President, Schwab<\/p>\n Chris Shaw asked, \u201cIs there a lot of discussion about how to adapt investments to the retail market?\u201d\u00a0<\/p>\n Brian Neal answered, \u201cThe demand is certainly there, from clients and RIAs.\u00a0 Some are new, some have been there for a long time.\u00a0 That growth continues and it hasn\u2019t slowed down.\u00a0 It continues to pick up. As a firm we are trying to delve into how we offer these products to a wider selection of clients.\u00a0 HNW clients.\u00a0 At Schwab we\u2019ve been looking at these products for a long time, but it has come to a head now.\u00a0 We are constantly looking at ways to make that happen and roll that out.\u201d\u00a0<\/p>\n Chris Shaw asked, \u201cFor a number of years we have been talking about automation and the digital portals. What have been your experiences with the move to digital.\u00a0 Do you think the advisors will actually use a digital portal to do these investments?\u201d<\/p>\n Eric Carlson answered, \u201cI don\u2019t see any barriers to digitizing these investments.\u00a0 We\u2019ve been analyzing third-party solutions as well as what we might want to build in-house.\u00a0 It is not going to be one solution solving all of the problems here.\u00a0 The economics of it make it difficult to get all of the dollars we would need to build a solution in-house.\u201d\u00a0\u00a0<\/p>\n Brian Neal said, \u201cHopefully if it\u2019s built, clients will come to use it.\u00a0 We\u2019ve heard from our RIAs.\u00a0 We deal with the same things that Eric has mentioned.\u00a0 The manual nature of the paperwork is certainly an issue.\u00a0 We\u2019ve been told by our clients that if we have it they will use it. The pandemic environment has forced us into the digital solutions, e-signatures, etc.\u00a0 That has been a positive that has come out of the pandemic environment.\u201d\u00a0<\/p>\n <\/p>\n Nicole Greene, Head of Brokerage Solutions, SS&C<\/p>\n Chris Shaw, Head of Retail Alternatives, SS&C ALPS<\/p>\n Nicole Greene explained the SS&C<\/a> Gateway with a chart showing the Asset Manager\u2019s view, the RIA\u2019s view, SS&C\u2019s Share Registry, and how the AltServe Gateway manages the connections between the different roles, including the Intermediaries.\u00a0 She showed how the documents are handled, and how the different participants can get a complete view of the transactions in the system, at each stage of the process. Nicole said, \u201cThe idea of the Gateway tool is, from the start, to be able to allow full transparency, no matter what seat you are sitting in within the process.\u00a0 At SS&C we are uniquely qualified because of the number of relationships we have within the industry.\u201d\u00a0<\/p>\n <\/p>\n Warren Thomas, Managing Partner, ExchangeRight<\/p>\n Geoff Flahardy, Director of National Accounts, ExchangeRight<\/p>\n ExchangeRight<\/a> has sold 41 DST programs and focused on credit-worthy net-leased, necessity retail.\u00a0 Over 93% of the NOI is from those tenants that have been designated as a necessity during the pandemic by the government.\u00a0 They are currently managing portfolios in 40 states with roughly $3.2 billion in assets. All of their offerings are meeting or exceeding their cash flow projections.\u00a0 Their tenants have gone nine years without ever missing a rent payment. ExchangeRight is solving investor needs first by capital preservation, with broad diversification within recession-resilient industries.\u00a0 They provide stable income from necessity-based, credit tenants with long-term net leases.\u00a0 Their programs offer tax deferral with depreciation deferrals and Section 199A REIT deductions.\u00a0 Their DST clients can exit into their REIT program via a 721 exchange or do another 1031 exchange, or cash out.\u00a0<\/p>\n <\/p>\n Mark Fuentes, SVP Head of Operations, Ashford Securities<\/p>\n Dan Breen, Managing Director of Business Development, Great Lakes Fund Solutions<\/p>\n Bill Robbins, CEO, WealthForge<\/a><\/p>\n Amy Small, SVP Director of Institutional Custody, UMB Bank<\/a><\/p>\n![\"\"](\"https:\/\/qa.bluevaultpartners.com\/wp-content\/uploads\/2020\/10\/Prospect-3-300x28.jpg\")
very pleased with their progress and expect to raise the offering\u2019s $1 billion well in advance of the projected close.\u00a0 They believe that preferred stock demonstrates their commitment to the independent channel.\u00a0 He says that the \u201cright hand side of the balance sheet\u201d tends to be an area where companies get into trouble, and Prospect Capital has diversified their capital stack via the preferred stock issuances.\u00a0<\/p>\nLeitbox Storage Partners, “Leitbox & Colliers National Storage Group talks a ‘Market Up’ vs. ‘Asset Down’ Self-Storage Strategy”<\/h4>\n
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<\/p>\nLegendary Capital, “A Better Way to Invest in Hospitality: Substantially Elevated Return Potential and Risk Mitigation”<\/h4>\n
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While many in the hospitality industry are in serious trouble, Legendary is in a position of strength to take advantage of investment opportunities later in this cycle.\u00a0 They currently have a pipeline of about 59 deals, representing 80 or 90 hotels.\u00a0 They should be able to \u201ccherry-pick\u201d the best deals as more owners are looking to exit the space.\u00a0<\/p>\nPacific Oak, “2021 Real Estate Opportunities”<\/h4>\n
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The SFR sector benefits from attractive demand and supply, generating strong occupancy and rent growth.\u00a0 In the future, they see further capital market growth in the SFR sector, adding to the range of available investment strategies.\u00a0 Alternatives for liquidity include portfolio sales, mergers, and public listings.<\/p>\nPanel Discussion, \u201cEvolution of Distribution in a Digital World\u201d<\/h4>\n
SS&C, “SS&C ALTSERVE Gateway \u2013Transforming the Alternative Marketplace\u201d<\/h4>\n
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<\/p>\n“ExchangeRight\u2019s Strategy for Pandemic-Resilience”<\/h4>\n
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<\/p>\nPanel Discussion, “Out with the Old and In with the New – A Candid Conversation with Today\u2019s Technology Leaders”<\/h4>\n
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types?\u201d\u00a0 The technology of owning alts is here today.\u00a0<\/p>\n![\"\"](\"https:\/\/qa.bluevaultpartners.com\/wp-content\/uploads\/2021\/02\/GLFSI-High-Resolution-logo300-300x95.gif\"){kind=logo}
how the data comes to us, so we don\u2019t have to replicate data sets.\u00a0\u00a0 Getting better at digesting the data as it comes to us.\u201d\u00a0 He also emphasized that we have all of the procedures we need and we just need to re-read them and follow them to stay out of trouble.\u00a0<\/p>\n