Investment Strategy
Hybrid Investment Strategy
Capital is deployed into selected UK residential development opportunities through project-specific structures, with each investment assessed against defined underwriting, leverage, security and return criteria.
THE CAPITAL LIFECYCLE
How Capital Is Deployed
A clear sequence from LP commitment through selection, deployment and realisation
Capital Committed
LP Commitments to Rise Capital AM Hybrid Fund SCSp
Opportunities Selected
Origination & Underwriting Committee Review
Capital Deployed
Secured Debt & Project Equity Project Structures
Value & Income Generated
Contractual Interest Development Profit Participation
Returns Distributed
Fund-Level Returns Subject to Fund Terms
TWO COMPLEMENTARY INVESTMENT ROUTES
The Hybrid Strategy
Secured development debt and selective equity participation provide distinct return drivers
DEBT
Secured Development Debt
12% p.a.
Illustrative Interest Rate
Contractual interest income from development lending
75%
Maximum LTGDV
Loan to Gross Development Value
90%
Maximum LTC
Loan to Cost
EQUITY
Project Equity Participation
10% of Project Cost
Illustrative Equity Requirement
Alongside senior development debt
Project-Level Participation
Selective Equity Deployment
Qualifying residential development
70%
Illustrative Share of Development Profit
Subject to individual project economics
COMBINED RETURN
Hybrid Return Strategy
12% p.a. + 70%
Illustrative Interest & Development Profit Participation
Contractual Income
Development debt targets contractual interest income secured at project level
Development Upside
Selective equity participation provides exposure to project-level value creation
Blended Return Profile
Designed to diversify return drivers across income and development profit participation
THE INVESTMENT RATIONALE
Why Hybrid?
Contractual Income
Development lending provides an income component
Equity Participation
Selective exposure
Asset-Backed Security
Debt targets senior secured project-level positions
Diversified Return Drivers
Returns draw on more than one source of project economics
INVESTMENT DISCIPLINE
Every prospective investment is subject to underwriting, risk assessment and Investment Committee review, followed by ongoing monitoring.