Typical GoCapital investment is $1Million to $10Million. Each investor invests on average $150k to $1 Million per deal. Majority of the focus is on Real Estate, low rise, entry level sub-division opportunities around Toronto, or 1 hour around Toronto. Investments are open only to Accredited Investors, and associates of Go Capital and family office of GoCapital management. Occasionally GoCapital selects private equity opportunities, that are in technology and other up and coming categories. These are rare, prime selected targets, hand picked by GoCapital team, companies on inflection point or close to IPO. These cherry picked opportunities are cream of the crop, real pride and joy of GoCapital team.
GoCapital investments are usually structured as Limited Partnerships with Real Estate owned by LP. Go Capital management team acts as a General Partner and Co-managers of the transaction, together with one of the prime, high quality name brand developers, with multi billion dollar track record. On special situation side Go Capital structures either an LP, or private placement into acquisition corporation. With every special situation deal GoCap takes a board seat, and also strives to create multiple classes of shares or VTB arrangements that protect principal investment of GoCap and its investors.
Each project is different. The length of the term, deal structure and all other important parameters are pre-disclosed allowing you to make an informed decision. On certain projects GoCap structure allows substantial tax benefits. Typical returns are within or above private equity investor expectation, with well defined risk profile.
Your full principal is returned upon project completion or at the liquidity event. The length of the term varies based on each individual project. Generally our projects lengths are within 12-48 months. The term of the expected principal return and strategy is disclosed to you prior to making any commitments.
Typical development transaction funds the equity portion for GoCap together with leading developer(s) and builder(s) to acquire and execute large scale Canadian real estate development projects. With continued growth in the Canadian real estate market, our construction and development industries have grown to a significant share of Canada’s overall GDP. Steady growth and a secure investment environment have made Canadian real estate an attractive haven for investors from around the world. Go Capital has extended the opportunity for select individual investors to participate in some of the most exciting and lucrative Canadian real estate developments (available only to accredited investors and close associates of Go Capital).
Outside of funds available through traditional banks, developers typically work with third party financing or equity partners to acquire funds necessary for land acquisition and construction financing. In addition to financing, developers of these projects have their own money invested ensuring that they are aligned with their investors. Go Capital has quickly become the preferred partner to developers seeking to finance quality real estate opportunities in strong Canadian sub markets.
Go Capital makes all reasonable efforts to run financing structures that can withstand substantial delays that happens in development and construction industry. Majority of the projects are financed with favorable VTB terms or cheap bank financing. Purchasers deposits typically are used in the development process in order to beef up the balance sheet. Go Capital typically enter projects on clear path to development and very often in position to market the housing units at the closing or very shortly after the closing.