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Jumpstart Equity Partners to invest in Australian and New Zealand Real Estate

Jumpstart Capital Partners, LLC, an investment company based in Los Angeles, California, has launched Jumpstart Equity Partners, a new investment and asset management platform established to capitalise on liquidity constraints in international real estate markets.

Institutional and individual investors will gain exclusive access to pre-qualified real estate investment opportunities outside the United States by way of a unique risk-averse strategy that offers investors the advantages of direct investment and benefits of a professionally managed fund.

Jumpstart Equity Partners is initially targeting distressed and undervalued real estate-related investments in select markets within Australia and New Zealand. A region that demonstrates economic stability, sustained population growth and strong market fundamentals, but continues to be encumbered by a tightened supply of credit following the global financial crisis.

“Jumpstart Equity Partners is structured in direct response to concerns expressed by institutional and individual investors in the United States and elsewhere, particularly with regard transparency and where their money is invested,” says chief executive officer Jason M Neal, a seasoned entrepreneur with more than 20 years industry experience. “This platform will benefit fund managers, family offices and individual investors interested in deploying capital offshore, but due to limited financial resources or not having regional representation have been unable to compete for institutional quality deal flow in offshore markets.
“Fund managers in the United States and Europe are again raising capital for domestic real estate investment strategies, however, as a result, competition for the relatively few quality assets has intensified. Moreover, ongoing political and economic uncertainty in these regions puts at considerable risk those investors reliant on growth targets or the time horizon to achieve profitability Fundamentally stable real estate markets, such as Australia and New Zealand, still continue to experience liquidity constraints especially in the private sector, sustaining quality deal flow and limiting competition, which is extremely opportunistic from an investment perspective.”

Based in Sydney, the Australian operation will be managed by seasoned and highly respected executives with, on average, more than 20 years experience in private equity real estate investment in the United States and Asia Pacific region.  
“Success is reliant on a cohesive management team with a proven and successful track record in the region,” says Neal. “We have formed a regional management and advisory team consisting of some of the most experienced and successful investment executives in Australia, who have worked together the past several years and provide access to a valuable network for off-market deal origination, as well as human and financial resources.”

Jumpstart Equity Partners has employed a diversified investment approach for Australia and New Zealand concentrating on distressed debt, mezzanine loans, secondary opportunities, preferred equity and joint venture equity investments generally ranging in size from USD10 million to USD50 million. The investment strategy focuses on value-added and opportunistic investments that provide current income and capital growth. The objective of each investment, structured as a proprietary closed-end partnership, is to achieve an internal rate of return (IRR) of not less than 15% over an anticipated three to five year term of investment.
A group of accredited investors, as defined by the United States Securities and Exchange Commission, are being invited to participate in the Australasian investment strategy. Similar to a club structure, participating investors gain exclusive access to pre-qualified investment opportunities in Australia and New Zealand and have the option to contribute financially on a deal-by-deal basis.

“Investors are not required to commit capital as with a traditional managed fund, they have the option to invest in opportunities that satisfy the platforms mandate and conform with the investor’s risk/reward profile,” says Neal. “With this said, we have to ensure those introduced as investment partners are committed to investing in the region, and are capable of participating financially within a reasonable timeframe, due to the platforms focus on distressed and privately negotiated transactions.”

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