How we evaluate investment opportunities
Our scoring framework balances quantitative returns with qualitative risk controls. Each opportunity is assessed across weighted pillars and validated with comparable market data and sponsor track records.
Excellent
≥ 85
Very High
75–84
High
65–74
Medium
50–64
Evaluation Process
Every investment opportunity undergoes a rigorous three-step evaluation process designed to identify high-quality investments while minimizing risk.
Screening
Initial sponsor, asset, and market fit check with red-flag filtering.
Activities
Sponsor background and track record verification
Asset type and location suitability assessment
Market fundamentals review
Red-flag identification and threshold checks
Underwriting
Conservative financial modeling, sensitivity analysis, and comparable benchmarking.
Activities
Financial model construction with conservative assumptions
Sensitivity analysis across multiple scenarios
Comparable transaction analysis
Risk assessment and third-party validation
Approval
Investment committee review, risk documentation, and disclosure sign-off.
Activities
Investment committee presentation
Risk assessment and mitigation plans
Legal and compliance review
Final score calculation and recommendation
Evaluation Pillars
Our scoring system evaluates opportunities across five key dimensions, each weighted according to its importance in overall investment quality.
Expected Returns
30% weightProjected IRR, cash yield, and exit scenarios validated against market comparables.
Key Factors
Internal Rate of Return (IRR) projections
Cash-on-cash yield and annual distributions
Exit multiple and terminal value assumptions
Comparison to market benchmark rates
Scoring Criteria
IRR: 15%+ (excellent), 12-15% (very high), 10-12% (high), 8-10% (medium)
Cash yield: 6%+ preferred with stable distributions
Clear exit strategy with realistic buyer universe
Risk Profile
25% weightLeverage, vacancy, developer track record, and downside protection.
Key Factors
Loan-to-value (LTV) ratio and leverage structure
Debt service coverage ratio (DSCR)
Vacancy rates and tenant quality
Developer/sponsor track record and financial strength
Scoring Criteria
LTV: <65% (excellent), 65-70% (very high), 70-75% (high)
DSCR: >1.5x (excellent), 1.3-1.5x (very high)
Track record: 5+ exits (excellent), 3-5 (very high)
Market Fundamentals
20% weightDemand growth, absorption, supply pipeline, and regulatory context.
Key Factors
Demand growth trends and population dynamics
Absorption rates and market velocity
Supply pipeline and construction activity
Regulatory environment and zoning changes
Scoring Criteria
Demand growth: >3% annually (excellent), 2-3% (very high)
Absorption: >95% (excellent), 90-95% (very high)
Supply: Balanced or constrained (excellent)
Sponsor Quality
15% weightExperience, past exits, on-time delivery, capitalization, and alignment.
Key Factors
Years of experience and track record length
Past exits and realized returns
On-time delivery and project execution
Financial strength and capitalization
Scoring Criteria
Experience: 10+ years (excellent), 5-10 years (very high)
Track record: 5+ exits with >15% IRR (excellent)
Execution: 100% on-time (excellent), >90% (very high)
Liquidity & Exit
10% weightHold horizon, exit pathways, buyer universe, and refinancing optionality.
Key Factors
Planned hold period and exit timeline
Exit strategy clarity and buyer universe
Refinancing options and debt markets
Market liquidity and transaction velocity
Scoring Criteria
Hold period: 3-5 years (excellent), 5-7 years (very high)
Exit clarity: Multiple pathways (excellent)
Buyer universe: Large and diverse (excellent)
Scoring Guide
The composite score is calculated by multiplying each pillar's raw score by its weight, then summing all weighted contributions. Higher-weighted pillars have greater influence on the final score.
Score Ranges
85-100
ExcellentOutstanding opportunity with strong fundamentals across all dimensions
75-84
Very HighStrong investment with compelling risk-adjusted returns
65-74
HighSolid opportunity with good investment characteristics
50-64
MediumModerate opportunity requiring careful consideration
Important Note
Scores provide a structured framework for comparison, but are complemented by thorough due diligence notes and qualitative assessments. The composite score should be used as a starting point for evaluation, not as the sole determinant of investment quality.