Earlier this year, Caliber completed its initial public offering (IPO) and is now listed on the NASDAQ stock exchange with the ticker CWD.
For advisors and investors who are focused on our private fund offerings, does the public listing matter? Yes—we believe it grants significant benefits to our private fund investors and sets us apart from other sponsors. Let’s look at five of the most important advantages.
1. Transparency for our fund investors
For advisors completing due diligence on Caliber funds, our status as a public company provides the ultimate level of transparency into how we are performing as a sponsor. Quarterly and annual reports as well as other filings offer advisors and due diligence officers regular access to standardized, detailed information. The institutional infrastructure we have built to support our status as a public company also grants private fund investors an extra degree of confidence in our firm.
Our commitment to transparency and corporate governance is long-standing: Caliber has reported according to public company standards for more than five years and is audited by a “Big Four” firm.
2. Increased agility
Our well-capitalized operating company structure allows Caliber to quickly take down an asset, hold the asset on its balance sheet, then transfer it to a fund at the same cost once the fund has raised enough capital to buy the asset.
3. Greater access to capital to fund strategic growth initiatives
The principal purposes of the public offering were to increase our capitalization and financial flexibility and facilitate our future access to the capital markets. We intend to use the net proceeds from the offering for general corporate purposes, including working capital, operating expenses, and capital expenditures.
The capital also supports key growth initiatives, which include our intention to expand distribution capabilities, product offerings, and geographic reach, potentially through accretive acquisitions.
4. Potential reduction in portfolio debt costs and resulting increases in customer return on investment
Our public listing bolsters our strength as a sponsor, which helps us obtain cheaper debt for underlying assets—and this makes the assets more profitable for our investors.
5. Increased ability to attract talent and reward results with tangible ownership
Caliber’s core principles of accountability, respect, and transparency are at the heart of who we are and how we operate. Our employees are integral to Caliber’s culture of transparency, integrity, professionalism, and excellence. We believe the talent of our employees, in association with our rigorous investment process, has supported our growth and investment performance over the past decade.
We carefully design our compensation strategy to attract qualified talent, retain team members, and stay competitive within the talent market. We believe the ability to incorporate publicly traded shares into this compensation strategy is a noteworthy advantage.
About Caliber (CaliberCos Inc.) (NASDAQ: CWD)
With more than $2.9 billion of managed assets, Caliber’s 15-year track record of managing and developing real estate is built on a singular goal: make money in all market conditions. Our growth is fueled by our performance and our competitive advantage: we invest in projects, strategies, and geographies that global real estate institutions do not. Integral to our competitive advantage is our in-house shared services group, which offers Caliber greater control over our real estate and visibility to future investment opportunities. There are multiple ways to participate in Caliber’s success: you can invest in Nasdaq-listed CaliberCos Inc. and/or you can invest directly in our Private Funds.
The information contained herein is general in nature and is not intended, and should not be construed, as accounting, financial, investment, legal, or tax advice, or opinion, in each instance provided by Caliber or any of its affiliates, agents, or representatives. The reader is cautioned that this material may not be applicable to, or suitable for, the reader’s specific circumstances, desires, needs, and requires consideration of all applicable facts and circumstances. The reader understands and acknowledges that, prior to taking any action relating to this material, the reader (i) has been encouraged to rely upon the advice of the reader’s accounting, financial, investment, legal, and tax advisers with respect to the accounting, financial, investment, legal, tax, and other considerations relating to this material, (ii) is not relying upon Caliber or any of its affiliates, agents, employees, managers, members, or representatives for accounting, financial, investment, legal, tax, or business advice, and (iii) has sought independent accounting, financial, investment, legal, tax, and business advice relating to this material. Caliber, and each of its affiliates, agents, employees, managers, members, and representatives assumes no obligation to inform the reader of any change in the law or other factors that could affect the information contained herein.