DHG is primarily seeking Institutional Investors or Family Investment Offices who have the ability to provide standby Capital that can be deployed on a discretionary basis and in a timely manner. Secondarily, DHG will accept funds from accredited High Net Worth Individuals. With this being said DHG has formed strategic alliances with CrowdStreet and Realty Shares who stringently underwrote and vetted DHG prior aligning with us. Since the alliance was formed we have been able to raise funds for three acquisitions with CrowdStreet with the average raise taking two to three weeks.
DHG seeks pre-committed funds ranging from a minimum of $500,000 to a maximum or $50,000,000 to be deployed in multiple assets within the Hospitality sector on a transaction-by-transaction basis.When aligning with the Crow Funding platform our investment units are substantially lower.
Return Structure and Projections
Preferred 8% base with negotiated waterfalls over the base. Strike return to Investors 10 % cash on cash, or 15% IRR& a Two multiple on the Equity invested. Investment life expectancy 3 to 7 years.
Manager Fees and Expenses
DHG will obtain market fees on all acquisitions, operations, and strategic sales. DHG will self-fund all upfront costs associated with the business operations, reimbursing DHG only from any specific transaction. If there are costs associated to transaction breakups, the Investor has no liability. Importantly, DHG acts as the sole Guarantor on any debt incurred on any given acquisition .
The Investor shall only be at risk for its direct investment and not for any operating cash shortfalls or debt associated with any given asset or assets.
Investor Profile and Questions
“The segment would be one where the investor whether it be a individual, family office or private Equity shop states its desired deal structure, return expectation and the minimum and maximum investment amount to be considered.”