Proactive Investment Strategy
Red Fort Capital chooses its investments proactively. Red Fort Capital’s advisors conducts primary on the ground research, analyzes supply/demand dynamics, observes ongoing developments and assesses economic trends and growth drivers in target micro-markets. Red Fort Capital has veloped an ability to spot emerging trends before they become mass market.
Red Fort Capital’s management team is constantly monitoring certain markets to identify and develop the most promising investment ideas based on asset class, geography and emerging growth drivers. This allows Red Fort Capital to react quickly to potential opportunities, as well as to leverage the team’s strong relationships with key partners in target micro-markets.
Monitoring Growth
Much of Red Fort Capital’s success can be attributed to monitoring of local growth drivers in targeted geographies. The firm has developed city-level expertise through extensive primary research, which supplements secondary sources. Red Fort Capital has therefore become one of the few well-capitalized investors with a research-driven approach, enabling the firm to respond quickly to compelling investment opportunities.
Margin of Safety
Red Fort Capital Fund’s real estate investments are development focused. Since development involves both execution and market risk, a high margin of safety is required in order to protect the downside. Red Fort Capital’s management team believes that rigorous due diligence, partner selection, conservative assumptions, downside scenario testing and structured transactions are the best methods for providing adequate margins of safety.
Optimal Capital Structure & Prudent Use of Leverage
Red Fort Capital optimizes the capital structures of its investments to allow for both efficient and timely repatriation of cash flows. In addition, Red Fort Capital believes in the prudent use of debt. Through Red Fort Capital’s close relationships with financial institutions, Red Fort Capital has been able to obtain attractive and expedited financings for its projects, even within capital-constrained environments.
Focus on Exit Strategies
In evaluating any investment opportunity, one of Red Fort Capital’s primary considerations is the exit strategy. To that end, Red Fort Capital is focused on making investments in high quality, well-located real estate assets that appeal to a wide group of end-users and buyers.
