MLG Capital
Over the course of the last 35 years, MLG Capital has consistently delivered attractive, tax efficient returns for investors by investing in private real estate. MLG invests via a series of funds that target both geographic and asset class diversification.
Overview
MLG Capital's current offering is its Private Fund VI, a $400M equity fund that it will be raising over the next 12-18 months. The fund targets net returns to investors of 11-15%, which is comprised of an 8% preferred return, full return of capital, and a 70/30 split of the remaining profits. Because of MLG's relationship with the White Coat Investor group, WCI investors get an improved profit split of 75/25 once the group reaches $5M in total investment in Fund VI. Assuming MLG achieves its target returns, this would result in approximately 1% additional return for WCI group members.
Check out this recent webinar with MLG Capital from our Real Estate Investment Opportunities Series to get to know MLG and learn more about what they have to offer investors. Nathan Clayberg discusses MLG Private Fund VI and MLG's view on the housing market and risk management. He explains the MLG investment and tax strategy and how it has lead to their success since 1987. Watch today to see if MLG is the right investing partner for you.
Why You?
Informed by a 35 year track record of success, MLG believes it offers four unique differentiators relative to other offerings in the marketplace.
1. Diversification – Many sponsors are still doing one off deals. MLG's diversified funds help investors to mitigate risk by investing in a diversified fund.
2. Moderate Leverage – MLG targets leverage in the 60-65% LTC range, which is much more conservative than many other sponsors in the market. At this leverage point, deals have strong debt service coverage and provide significant cushion to deal with tumultuous market conditions.
3. Robust Deal Sourcing – One of the most challenging parts of investing in private real estate is the ability to consistently find unique deals. Many times, the key to finding the right opportunity means that it is found off-market, where it doesn't go through a competitive bidding process to drive the price up. MLG sources deals through two different strategies, as both a direct owner/operator and through joint venture partnerships. In our home markets of Wisconsin, Texas, and Florida, we manage ~30,000 apartment units and have the benefit of 35 years of relationships and operational expertise. In those markets, we believe we're the group best suited to identify unique deals and get the most value from those deals. In other markets, we will partner up with local groups that have connections in the market to help identify special opportunities. When they find the right deal, MLG partners with the operator and MLG investors benefit through their participation in a deal they never would have seen otherwise.
4. Tax Planning – While it's imperative to not make tax planning the primary focus, it can be a great cherry on top after first making a smart real estate investment. MLG has 9 CPAs on staff and is very committed to maximizing after tax return for investors.
Ideal Investor
MLG is looking to form long term relationships with investors, and most investors will make multiple investments over time. The most prosperous relationships come when investors share MLG's philosophy of being focused on producing consistent, risk-adjusted returns. Many other sponsors will tout shiny return expectations, but take on outsized risk to get there. MLG's first and foremost goal is to protect investor capital, and then grow investor wealth in a reliable and responsible way.