Eldorado utilizes a bottom-up/top-down, multi-strategy, multi-manager investment style. Eldorado understands the real estate investment universe and anticipates having access to the best performing specialty managers. Eldorado principals have a strong record of evaluating the top real estate investment opportunities, managerial talent and discounted secondary market purchases.

Our Eldorado Strategic Allocation Model permits us continuous insight into the forward trends of the real estate market both regionally and across investment type utilizing a variety of research sources. Armed with these insights, Eldorado fund managers allocate capital across the most promising investment categories with managers determined by our qualitative manager selection process. Therefore, Eldorado Funds should have excellent prospects for success in the real estate private equity fund universe.

We would expect to construct portfolios that utilize a mix of the following investment approaches:

Privately Offered Equity Investments

Invest with specialty/emerging managers
Benefit from alignment with the most motivated managers
Investment structure could include joint ventures

Targeted Co-Investments with specialty managers

Targeted specific co-investments offer benefits to Eldorado Funds
Element of control
Provide earliest look at profitable opportunities
Allow Eldorado Funds to meet target investment allocations
Eldorado Asset Management will limit the number of targeted co-investments to very select specialty managers/property specific/ market experts.

Secondary Market Investments purchased at discount

Add immediate value
Boost returns over industry benchmarks
Offset J-curve effect of other portfolio investments

Equity-Equivalent Private Debt/CMBS

Certain managers have realized outstanding returns investing via preferred equity or mezzanine debt.
Utilizing appropriate quantitative and qualitative criteria, the Strategic Allocation Model can yield equity-like returns for the Fund from CMBS "B-piece" and other debt investments.

Benefits to Eldorado real estate multi-strategy funds

Greater returns in excess of industry benchmarks than other approaches (more alpha)
Superior risk-adjusted returns