We are an alternative asset manager on a mission to build wealth for our investors, our team, and our communities.
Over the past 16 years, Caliber has grown into a leading diversified alternative asset management firm, managing more than $2.9 billion in assets under management and under development. We strive to build wealth for our clients by creating, managing, and servicing middle-market investment funds, private syndications, and direct investments.
Identifying An Opportunity
We built Caliber to provide wealth development opportunities to investors who were previously excluded from investing in alternative asset classes. We do this by finding investment opportunities that are often overlooked by the rest of the market due to their size or location and creating incremental return opportunities by managing the full life cycle of many of our investments.
Early on, we recognized two meaningful gaps in the alternative asset marketplace. First, accredited investors were hungry for the opportunity to invest outside of traditional stocks, bonds, and insurance products; however, an accessible and trusted avenue to alternative asset classes simply didn’t exist. Second, real estate investment opportunities in the middle market—which we define as projects in the $5 million to $50 million range—often lacked sufficient funding. We stepped into the gaps and saw our business grow quickly as we met the needs of the market and our investors
The Democratization of Alternative Assets
For years, access to alternative assets was limited to the largest financial institutions and a select group of ultra-high-net-worth investors. We believe this left many investors at a significant disadvantage when it came to portfolio diversification, access to potentially higher return opportunities, tax planning, and inflation hedging.
We built Caliber to change that dynamic by democratizing access to alternative assets for all investors.
When public solicitation of private securities became a viable strategy in 2012, Caliber was an early adopter of the new rules as we saw the opportunity to bring alternative assets to a broader range of accredited investors. We began with a focus on education to help our investors understand the market for alternative investments and the strategies that are effective in this segment. Then we took time to understand their investment objectives so we could build alternative investment products that best fit their needs.
Focus on the Middle Market
From the beginning, Caliber has focused on finding investment opportunities in the middle market—a large, underserved segment of the market where most asset managers see barriers rather than opportunity.
We believe our focus on middle market opportunities is a key competitive strength, and we believe the opportunity to invest in, develop, and manage real estate projects in the middle market has never been more compelling. This segment is highly fragmented due to a mismatch between the size and complexity of the assets themselves, the inability of smaller firms to compete for those assets, and the lack of competition from traditional institutions that tend to focus on larger projects.
We apply our middle market focus to geographies that express business-friendly investment climates and strong, multi-year demographic trends. While we are not limited to any one area of the United States, we have found the Southwest and Mountain West regions to be among the most attractive in the country. We generally avoid engaging in direct competition in over-regulated and saturated markets.
Vertically Integrated Platform
A key differentiator that allows Caliber to access middle market opportunities at scale is our vertically integrated business model. Developing internal capabilities in investment design and management, capital formation services, and real asset services has enabled Caliber to pursue many real estate projects at any stage, including assets that may be facing stress or distress, or projects that other competing companies simply cannot successfully transform. Over more than a decade, Caliber has built a track record of identifying opportunities and finding a path forward where others may not.
Our goal is to optimize the use of in-house services for high-margin, low-volume tasks while using third-party services for high-volume, low-margin tasks. Our asset management activities are complemented with transaction and advisory services, including development and construction management, acquisition and disposition expertise, and fund formation.
Caliber’s Additional Competitive Strengths
- Extensive relationship and sourcing network – We leverage our relationships in order to source deals for our funds. In addition, our management has extensive relationships with major industry participants in each of the markets in which we currently operate. Their local presence and reputation in these markets enables them to cultivate key relationships with major holders of property inventory, in particular, financial institutions, throughout the real estate community.
- Structuring expertise and speed of execution – We believe we have developed a reputation of being able to quickly execute, as well as originate and creatively structure acquisitions, dispositions, and financing transactions. We have experience in a variety of investment strategies, including direct property investments, joint ventures, participating loans, and investments in performing and non-performing mortgages with the objective of long-term ownership.
- Risk protection and investment discipline. We underwrite our investments based upon an examination of investment economics and an understanding of market dynamics and risk management strategies. We conduct an in-depth sensitivity analysis on each of our fund investments. This analysis applies various economic scenarios that include, where appropriate, changes to rental rates, absorption periods, operating expenses, interest rates, exit values and holding periods.
Caliber’s Advisor Resource Hub
To learn more about investing in real estate, visit our Advisor Resource Hub or contact our team today.
About Caliber (CaliberCos Inc.) (NASDAQ: CWD)
With more than $2.9 billion of managed assets, including estimated costs to complete assets under development, Caliber’s 16-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: invest in Nasdaq-listed CaliberCos Inc. and/or invest directly in our Private Funds.
Investor Considerations
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.
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