Choosing Capital Growth Partners

People with deep knowledge about alternative investments (land, hedge funds and so on) are capital growth partners to investors.

The goal of almost all investment is capital growth. This is as true in the publicly traded stock and bond markets as it is in alternative investments (hedge funds, real estate investment trusts, foreign exchanged funds, private equity and the like).

But because most investors are themselves not intimately familiar with the businesses and real assets they invest in, they largely depend on investment advisors to find investments that are well managed. Advisors and managers are, by definition, capital growth partners with investors, as they match funds with appropriate and productive assets. Land investment advisors typically have an expert team in-house, but also it also work with a select group of strategic partners to deliver the best return on its investments.

A capital growth partner in strategic land development provides a good example of how this works. Land is a finite asset, which set against a growing population – in countries and regions where the population or commercial uses of land are increasing – generally means that the land will increase in value. And yet there are many unknowns about individual tracts of land: how is it currently zoned, and what are the chances the parcel or parcels are ripe for development? What other factors, such as new employers entering the area, might drive up demand for property? Are there environmental issues with the land that make it unsuitable or prohibitively costly for development? These are critical questions that a real estate advisor to a capital growth partner should be able to answer.