What We Do
(and Don’t Do)
As a private, closely-held investment company, we are flexible by design. We are entrepreneurial and nimble by mindset and attitude. We are lean by choice. And we are focused by necessity.
At Black Cap Halcyon, we:
- Generate alpha for the investment portfolio through proprietary methodologies that:
- Identify and exploit macro trends earlier than other commercial real estate investors and asset managers.
- Exploit investment premia and market inefficiencies inherent to illiquid, private, real assets and nuances specific to each property type, site location and metro market.
- Create wealth by holding strategic assets long term and employing superior asset management strategies.
- Focus on current absolute cash yield and current long-term appreciation rather than quarterly or other near-term IRR metrics for measuring return.
- Identify and prudently manage systemic and idiosyncratic risks within each investment and the portfolio as a whole.
- Maintain a targeted geographic/property type focus that provides the best opportunities for long-term wealth creation and cash returns while diversifying market risk and industry demand drivers.
- Align the interests of our investment capital with long-term limited investors including wealthy individuals, family offices and institutional capital such as life insurance companies, pension funds and endowments.
- Provide comprehensive commercial real estate solutions to third party property owners and portfolio managers.
At Black Cap Halcyon, we do not:
- Strive for asset accumulation or asset churn as an end itself, as we believe that doing so diverts management attention from our portfolio objectives.
- Attempt to “time the market” in pursuit of short-term gains or pure momentum plays.
- Target higher, but riskier, yields by using aggressive leverage or financial engineering at the company or asset level.
- Defer capital expenditures that can yield higher wealth outcomes over longer periods of time in the interest of providing marginal increases to short-term cash flow.
- Engage in activities to drive “optics” over actual performance.
- Focus on meeting short-term targets at the cost of reducing long-term gains.