Industry veterans Christopher Hilbert and R. Kyle Winning have launched 3G Capital Advisors to provide creative capital solutions. The boutique finance company is a response to the growing demand for consistent and competitively priced capital alternatives, according to Hilbert. Hilbert and Winning were formerly executives at Steadfast Companies and have institutional and retail fundraising experience.
“Over the past 10 years, my partner, Kyle Winning and I developed an appreciation for the number of quality, regional multifamily developers and property owners in secondary and tertiary growth markets across the United States,” Hilbert, the CEO of 3G Capital Advisors, tells GlobeSt.com. “It became clear that the access to a consistent source of competitively priced capital was the limiting factor for many of these firms' success. We felt that our knowledge of these real estate markets, coupled with our quality relationships with many institutional debt and equity sources, would allow us to build a brand focused on delivering individualized capital solutions to these topnotch organizations.”
While there is a recent uptick in demand for alternative capital sources, Hilbert says that there is always demand for these capital sources. “We believe that creative debt and equity alternatives are always welcome in the marketplace,” he says. “Given the continuing demand for quality investment opportunities; 3G can leverage its existing owner/developer relationships in multiple markets, providing new alternatives for both capital providers and real estate owners.”
The firm will focus on mid-size regional developers transitioning to long-term capital, owner-operators looking for institutional capital sources and, finally, “existing owners looking to diversify a portion of their invested capital to mitigate risks associated with concentration risks in specific markets,” says Hilbert. The co-founders plan to leverage their expensive experience to provide resources to these borrowers. “We have a broad-based development, investment, acquisition and management track record going back almost 35 years,” Hilbert adds. “The gray hairs we've earned inform our current research and investment, underwriting and asset management strategies. Having completed billions of dollars of acquisitions in markets across the United States, we have been blessed by deep relationships with debt and equity providers eager to expand their potential investment in us.”
Although most experts agree that 2019 will continue to be a strong year, mart sentiment is becoming increasingly apprehensive. However, Hilbert feels optimistic about launching this new firm now. “My dad once told me money is made in up markets and down markets, knowing what strategy works in each is what's important,” he says. “Where we are in the cycle is an important consideration for how investment dollars are sourced and deployed. As our primary goal is to co-invest alongside each of our investors, we recognize that investment horizon may be the most significant data point in our investment criteria. Understanding that we may be late in the cycle has created several opportunities that may be more intriguing as property owners look to expand and diversify income streams in advance of a potential downturn.”
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Kelsi Maree Borland
