Evolution Investment ManagementEvolution Investment ManagementEIM invests across the capital stack in both LP Investment and GP Co-Investment. We approach all of our investments from a credit mindset to preserve our clients’ capital in addition to generating compelling risk-adjusted returns.
Evolution IM’s investment strategy focuses on opportunistic real estate investments that deliver attractive risk-adjusted returns across multiple property sectors. While our platform remains diversified, the residential sector has been our primary area of investment, with over 70% of committed capital deployed into multifamily communities. We believe the residential sector will continue to offer compelling fundamentals, supported by favorable demographics, strong job and population growth in select targeted markets, coupled with resilient demand for rental housing amid high homeownership costs.
Our funds are opportunistic. We invest in joint ventures with third party operator sponsors and seek attractive risk-adjusted returns for investors via recapitalization, rehabilitation and value–add repositioning. Our funds typically make sponsor (GP) and non-control (LP) investments, but will also make control LP and preferred equity investments where appropriate.
Evolution IM’s investment strategy is to seek out unique real estate investment opportunities primarily in the residential real estate sector across all geographies. We have primarily targeted multi-family value-add investments but have also invested in the office, industrial and retail sectors.
Our funds are typically opportunistic in nature seeking value-add, repositioning or recapitalization investments.
The funds will typically make sponsor (GP) and non-control (LP) investments in properties but will also make control LP and preferred equity investments where appropriate.
Evolution IM pursues transactions structured as joint ventures between operator partners, institutional real estate investors and/or family offices. Investments to date have typically involved a single property or portfolio of properties in joint ventures with operator partners, and in certain instances, have been structured as a single commitment to a series of acquisitions over a fixed period of time. EIM typically provides 80% to 90% of the sponsor equity stack, with operator partners providing the remainder. In return, EIM either (i) invests on an unpromoted basis or (ii) earns a minority share of the sponsor’s incentive fee, assuming investor returns exceed a base level threshold.
Evolution IM invests in joint ventures with operator partners who many times have limited access to institutional capital sources and related structures. In such transactions, EIM vehicles will invest as a minority LP on a promoted basis alongside other limited partners or as the majority LP investor. Evolution IM provides operator partners with a competitive advantage and has the flexibility to provide LP capital at investment levels which may be below minimum thresholds required by larger competitors. When serving as a minority LP, Evolution IM lends credibility and attracts additional limited partners. When serving as the majority LP, Evolution IM provides a simple, low-cost alternative and comprehensive equity solution.
