Agellan Capital | Strategy
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Strategy

The primary objective of Agellan is capital preservation while generating above average risk-adjusted returns.

The four pillars of Agellan’s approach to investment management are:

  • Tactical Asset Management
  • Transparency
  • Alignment of Interests
  • Downside Protection

Agellan’s approach to real estate acquisition does not include macro bets on a region’s economy or local market fundamentals. While these inclusive factors are material in the valuation and assessment process, our focus is on asset selection where we can drive results with leasing, re-positioning, and property operations. Maximizing returns, at a predetermined level of risk, is undertaken by growing cash flow and realizing gains on a timely basis.

Activities are undertaken in the context of each client’s Investment Policy Statement, which is developed with consideration given to each of the following:

  • Product Type & Diversification: Property type, tenancy profile and location preferences
  • Risk: Assessment of risk tolerance, capital calls and financing preferences
  • Return Expectations: Total return objectives including distributions, rush on capital, and profit
  • Investment Period: Holding period requirements and exit strategy
  • Tax Considerations: Implications of tax within the decision making process
  • Reporting/Benchmarking: Agellan provides institutional-quality reporting on a regular and consistent basis. Strong IT policies, procedures and compliance measures have been instituted. Agellan has been measured against several benchmarking indexes, including the IPD index.
  • Alignment of Interest: Agellan generally charges a single asset management fee and works on an incentive fee based on round-trip performance. Agellan also co-invests in many of its invesment programs alongside the capital partner/client.