Wealth & Finance International - Fund Awards 2016

Fund Awards 2016 6 Best North America Real Estate Fund: Real Estate Fund II & Best for Opportunistic Real Estate Asset Investment - California Ethika Investments is a real estate private equity firm formed to provide investors access to a unique platform by tactically investing in opportunistic real estate assets primarily in the United States. We invited Ethika President Jean Paul Szita to talk us through the firm and how it came to win this prestigious accolade. Company: Ethika Investments Name: Jean Paul Szita Email: [email protected] Web Address: www.ethikainvestments.com Address: Suite 1016, 1880 Century Park East, Suite 106, Los Angeles, CA, 90067 Telephone: 1.310.954.2009 Ethika Investments, an affiliate of Laurus Corporation, a real estate investment and development company that specializes in hotel and resorts, office buildings, multifamily and mixed-use properties, is a Reg- istered Investment Advisor which specializes in management of private equity real estate funds with a vertically integrated solution. The firm’s fund partners vary throughout each real estate cycle, but generally are a 65% /35% split between foreign and domestic capital sources. Its clientele includes a wide variety of investors, from large institutional pensions to private sovereign wealth funds. Jean Paul explains the firm’s investment strategy and how it aims to provide these clients with the best possible financial solutions which meet their needs. “Here at Ethika, we believe timing and diversification are the key com- ponents to any successful investment strategy. “Therefore, our team focuses on investments in value-add and credit strategies where our team can stabilize the assets to produce de- pendable yields as well as upside opportunity, or provide financing that requires a deep understanding of transitional assets outside of the purview of traditional commercial real estate lenders to produce outstanding risk-adjusted yields. In today’s market, underperforming transitional assets remain attractively priced, and continue to deteriorate as distressed owners are unable to continue investing in them. After the strong acquisition period that occurred post 2009, we are finding that today is the era of strategic execution of value-add investment business plans and maximization of end value. “Partnering with a local private equity real estate fund like Ethika provides foreign investors a trustworthy alignment of interest. Our funds also allow for vested interest as well as a clear objective, breadth of cycle-tested experience and an expansive skill set.” It is this strategy which sets the firm apart within the financial market and highlights the suitability of its investment offering to clients, as Jean Paul explains. “Ethika is vertically-integrated, serving both as a fund manager and real estate services provider, and working in tandem with our affiliate Laurus Corporation, we are directly involved in the management of the business plan for every investment, ensuring execution of the value-add process from start to finish. “The company puts together entire strategies for investing that encom- pass everything from sourcing the asset, underwriting the asset, escrow, design, construction, repositioning, accounting, investor relations and property management, consolidating the entire process to a single op- eration, again minimising risk and the room for error. Ethika also has a highly diverse client base and prides itself on developing and maintain- ing relationships with their clients as the core of its business. “Ultimately our midsize niche elevates us from the crowd of compet- itors; a typical deployment lies between US$15 to $30 million, with an increased value on our net multiple goal of 2.0x over the fund’s investment.” Central to the firm’s success is its experienced and dedicated staff, who are ambitious and eager to support clients however possible. “At Ethika our staff are integral to the firm’s continued expansion, into new markets and alternative investment strategies, as we explore unique approaches to value creation while upholding our commitment to delivering outstanding risk-adjusted returns to our investors. As such we look for individuals that prioritize relationships with clients and who possess a diversified and substantial background in the industry. LA16040