Our Investment strategy is diversified to ensure maximum stability for returns on investments. Diversifying the investments also makes the risks involved minimal.
OUR INVESTMENT STRATEGY
Alamo holds a mix of assets designed to offer its investors a balance of income and growth. Our strategy fosters flexibility and allows us to quickly react to changing market conditions. Our assets can be grouped into three broad categories:
Income (15-25%)
Core. Our main focus is on sustainability: we search for assets that have strong and predictable cash flows. We then seek to acquire these assets at a moderate discount, hold for 7-10 years, and then make a reasonable exit.
Core plus. Very similar to the core strategy, but in this asset class, we aim for slightly more capital appreciation. Investment Duration is 5-8 years.
Growth (40-50%)
Value-added We acquire assets at substantial discounts to replacement value, fix or improve, and then sell when market conditions are attractive. The investment duration is 3-6 years.
Opportunistic our flexible approach allows us to take advantage of unusual opportunities. This includes land with shovel-ready projects. Our aim is to create value and exit. There is little or no cash on cash return in this category. The investment duration is 2-4 years.
Hybrids (15-25%)
Development Value-add potential in attractive markets. The acquisition price, timing, and geography are vital to success; we implement a value investing techniques to generate risk-adjusted alpha. The investment duration is 3-7 years.
Debt market We participate as GP partners in meaningful, synergistic offerings. We arrange and offer mezzanine debt to qualifying investments through strategic partnerships. The investment duration is 3-7 years.