INVESTMENT APPROACH
DiFalco Group seeks investment opportunities in markets that have endured a dislocation in asset pricing and the creation of deep-value opportunities. Specifically, the DiFalco Group seeks to capitalize on market conditions in which:
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Liquidity is restricted, and financing is constrained;
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Financial institutions’ balance sheets are under pressure, and there is a need to dispose of high volumes of assets to manage capital, deleverage, and build liquidity; and
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The DiFalco Group can obtain a competitive advantage due to its ability to move quickly and deploy capital.
When pursuing investment opportunities, the DiFalco Group evaluates a broad range of transactions, including, but not limited to:
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Equity and debt investments in value-oriented assets and operating companies. Investments are structured as asset specific, asset and operating company (OpCo/PropCo), or as direct investment into operating companies;
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Asset types include all commercial and residential real estate, including non-institutional investments;
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Operating companies include companies that require the use of the asset to operate their primary business (e.g. Hospitality, Senior Care, Multi-Family); and
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Investment structures include Senior Debt, Subordinated debt, and Preferred, Common, or Joint Venture equity.
The DiFalco Group’s investment approach focuses on leveraging long-standing relationships with counterparties to source opportunities, a comprehensive bottom-up asset-based underwriting approach, a streamlined approval process, a focused management strategy, and the evaluation of exit strategies.