chi-lux24 CHICAGO— O rigin Investments has just raised $2.75 million in capital through a convertible note offering. The Chicago-based private equity firm plans to use the funds for partner acquisition and marketing initiatives. Raising money this way is a method typically used by early-stage firms that have not yet established a track record, so the move is a bit unusual for Origin, which was founded in 2007 and has generated 28% average returns for its investors. But David Scherer , a co-founder of the firm, tells GlobeSt.com that the strategy isn't just about raising capital. “This is a way for investors to further partner with us and benefit from the growth of the firm,” he says. In all, 37 private individuals, including longtime investors and current Origin employees, invested in this round. Both Scherer and Michael Episcope , the company's other cofounder, put a lot of their own money into its funds, and having people in turn invest directly in the company creates “tremendous alignment between us and our investors. We want to have direct relationships.” But continuing to expand operations through advanced technology and marketing also remains important. “I believe the product speaks for itself,” says Scherer. “If you gave us one million dollars four or five years ago, you would have two million today; that's life changing.” However, when some investors told him that Origin “was the best company we've never heard of,” Scherer realized “we've got to change that.” Origin has already made significant progress toward that goal. Last Fall, it launched its new real estate investing platform, origininvestments.com . This platform was originally designed to enhance communication and transparency with Origin's investors. By adding new functions, Origin has made it easy for qualified high net worth investors to participate alongside institutions, family offices and Origin principals in the firm's investment opportunities. Scherer says the platform has safety standards similar to the most sophisticated financial institutions. Furthermore, it gives investors access to all of the underwriting and an abundant amount of details on each deal. Origin mostly buys office and multifamily properties in the metro areas of Charlotte, Raleigh, Atlanta, Houston, Dallas, Austin , Chicago and Denver, and if, f or example, a long-term lease gets signed at one of its properties in Charlotte, investors can quickly see how that deal impacts both the asset's value and the value of the overall fund. And putting more emphasis on transparency and marketing has already paid off. “We've tripled our client base in just the last seven months,” says Scherer. chi-lux24 CHICAGO— O rigin Investments has just raised $2.75 million in capital through a convertible note offering. The Chicago-based private equity firm plans to use the funds for partner acquisition and marketing initiatives. Raising money this way is a method typically used by early-stage firms that have not yet established a track record, so the move is a bit unusual for Origin, which was founded in 2007 and has generated 28% average returns for its investors. But David Scherer , a co-founder of the firm, tells GlobeSt.com that the strategy isn't just about raising capital. “This is a way for investors to further partner with us and benefit from the growth of the firm,” he says. In all, 37 private individuals, including longtime investors and current Origin employees, invested in this round. Both Scherer and Michael Episcope , the company's other cofounder, put a lot of their own money into its funds, and having people in turn invest directly in the company creates “tremendous alignment between us and our investors. We want to have direct relationships.” But continuing to expand operations through advanced technology and marketing also remains important. “I believe the product speaks for itself,” says Scherer. “If you gave us one million dollars four or five years ago, you would have two million today; that's life changing.” However, when some investors told him that Origin “was the best company we've never heard of,” Scherer realized “we've got to change that.” Origin has already made significant progress toward that goal. Last Fall, it launched its new real estate investing platform, origininvestments.com . This platform was originally designed to enhance communication and transparency with Origin's investors. By adding new functions, Origin has made it easy for qualified high net worth investors to participate alongside institutions, family offices and Origin principals in the firm's investment opportunities. Scherer says the platform has safety standards similar to the most sophisticated financial institutions. Furthermore, it gives investors access to all of the underwriting and an abundant amount of details on each deal. Origin mostly buys office and multifamily properties in the metro areas of Charlotte, Raleigh, Atlanta, Houston, Dallas, Austin , Chicago and Denver, and if, f or example, a long-term lease gets signed at one of its properties in Charlotte, investors can quickly see how that deal impacts both the asset's value and the value of the overall fund. And putting more emphasis on transparency and marketing has already paid off. “We've tripled our client base in just the last seven months,” says Scherer.

Continue Reading for Free

Register and gain access to:

  • Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
  • Educational webcasts, white papers, and ebooks from industry thought leaders
  • Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Brian J. Rogal

Brian J. Rogal is a Chicago-based freelance writer with years of experience as an investigative reporter and editor, most notably at The Chicago Reporter, where he concentrated on housing issues. He also has written extensively on alternative energy and the payments card industry for national trade publications.

brianjrogal

Just another ALM site