Ten Capital Management has launched a middle market real estate strategy targeting transactions which are too large or complex for small investors but which fall below the radar of larger institutional investors.
The firm invests on a deal-by-deal basis and each investment typically requires between USD5m to USD20m of equity. In the past 12 months, both independently and since launching the middle market strategy, the partners of Ten Capital Management have raised and invested approximately USD35m of equity across seven investments throughout the US with co-investment partners including a mix of high net worth and institutional capital.
Ten Capital Management was founded in March 2011 by Ben Adams with the backing of a prominent individual investor. Adams was previously a portfolio manager at the Townsend Group overseeing approximately USD2bn for the firm's discretionary multi-manager strategy. Adams was joined at Ten Capital Management by partners Josh Brown and Carmela Guerrero. Brown previously worked at Lionstone Development and now leads finance and compliance for Ten Capital Management. Guerrero serves as the chief operating officer, having worked previously with the Townsend Group and as transaction counsel at Duane Morris.
Ten Capital Management partnered with Jordan Caspari and David Smith in the spring of 2013 to launch the firm's middle market real estate strategy. Caspari and Smith have been independently focused on the middle-market real estate space since 2012 when they departed from senior roles at Partners Group and Helios AMC (now Situs). Caspari and Smith will lead the strategy and continue to be based in their San Francisco office along with Peter Horn, who recently joined the firm in June 2013 as an associate. Horn previously worked with Morgan Keegan Real Estate Investment Bank (now Raymond James) and Simpson Housing.
Ten Capital Management will maintain its Cleveland headquarters.
Adams, Brown, Caspari and Smith will each serve on the investment committee for the business.
Ten Capital Management has closed three transactions in the past six months, including one retail and two office properties, requiring a total of USD25m in equity.
Caspari says: "In our prior institutional roles, we identified a material gap in the middle-market for both debt and equity capital. We set out to build a business that could provide sourcing, underwriting and execution capabilities for institutional capital partners seeking direct real estate exposure in the middle market."
Smith says: "We are thrilled to partner with Ten Capital Management. We believe there is a meaningful opportunity to generate superior returns through real estate investments that are too small to warrant the attention of our institutional peers, but too large for local operators to tackle independently."