A Deeper Look at Leitbox, Sixty West, and Triton Pacific
October 16, 2019 | James Sprow | Blue Vault
On October 8, Blue Vault presented a Webinar introducing three companies that sponsor alternative investment programs.
Leitbox Portfolio Partners– a real estate investment company that develops and acquires self-storage (often with mixed-use & retail integration) in primary and secondary markets.
Sixty West– one of America’s most experienced developers of the tax-advantaged real estate industry. The firm focuses on various areas of real estate tax-deferred investing, including low-income housing credits, alternative energy tax credits including solar, and Opportunity Zones.
Triton Pacific– provides unique access to high net worth investors with a focus on income-oriented private equity investments. The firm generally acquires controlling interests in small and mid-size companies where its expertise can enhance value for shareholders.
Leitbox Portfolio Partners
Somewhat unique to the self-storage sector, Leitbox often integrates a Mixed-Use/Retail component to help improve financial outcomes, such as lowering the property’s break-even threshold, while allowing projects to be launched in more desirable, high-barrier to entry neighborhoods.
Leitbox uses a “sharpshooter” approach to developing self-storage projects in locations with high barriers to entry that meet their stringent SiteFinder requirements. They utilize a self-storage prototype, repeatable designs that reduce execution risk and capitalize on their 25-year experience in the retail space.
Leitbox Portfolio Partners Self Storage Fund I, LLC is a Reg. D Private Placement, with a targeted offering amount of $25 million, available to accredited investors with a minimum investment of $50,000. The Company intends to maximize exit valuations, with a targeted average hold period of two to three years after completion but does not have a firm liquidation date.
Sixty West
Since 2008, Sixty West has raised in excess of $2.6 billion of investment capital. These funds have been invested in real estate projects valued at over $3.5 billion located in 42 states. Sixty West is a leader in the use of real estate tax-advantaged strategies across a range of programs, including:
• Renewable Energy
• Low Income Housing Tax Credits
• Historic, Film and State Tax Credits
• Historic Preservation
• Conservation Utilization
• Mining
• Opportunity Zones
Sixty West has completed over 80 Renewable Energy projects and raised over $180 million of investor equity for those projects since 2012. The Company has participated in more than $1 billion in tax credit equity in over $2 billion of low-income housing projects in 26 states, resulting in over 3,000 multi-family units.
Sixty West is raising funds for Opportunity Zone projects that the firm has identified, enabling tax benefits and providing potentially superior investment returns. One example is a multi-use project in the Old Fourth Ward of Atlanta, an offering of up to $35 million, to develop office, hotel and retail space, currently under construction.
Triton Pacific Capital Partners, LLC
Triton Pacific is a middle market focused private equity firm headquartered in Los Angeles, CA. Founded in 2001, Triton Pacific brings demonstrated expertise in areas including operations, capital markets, mergers & acquisitions, strategic planning, intellectual property, and technology.
The firm generally acquires controlling interests in small and mid-size companies where its expertise can enhance value for shareholders. The Company spends significant time with each company in its portfolio, working from day one to put in place a strategy for accelerated growth. They utilize their proven Value Enhancement ProgramTM to guide overall strategic decisions towards long term value creation for all stakeholders.
Triton Pacific has a long-term investment perspective. They encourage their portfolio companies to maintain their business focus; to make strategic acquisitions; and to motivate a wide range of employees by giving them a stake in the business.
TP Flexible Income Fund (“FLEX”) is a publicly registered non-traded business development company (“BDC”) and is the surviving entity of a merger between Pathway Capital Opportunity Fund, Inc. and Triton Pacific Investment Corporation, Inc., which was completed on March 31, 2019.
TP Flexible Income Fund seeks to provide income primarily from senior and secured credit, from a strategy that is flexible up and down the range of credit investment structures, and flexible across the spectrum of U.S. economic sectors.
Targeted Investments:
• Senior Secured First Loans
• Senior Secured Second Loans
The key characteristics of the Fund’s targeted investments include highest priority in the capital structure, typically secured by the borrower’s assets, with yield, interest rate, and inflation protection through floating rates and LIBOR floors.
As of September 30, 2019, the fund is offering Class A shares at a public offering price of $11.38 per share. The Fund’s directors have declared distributions at the annualized rate of 6.0% based on that share price.
