Investing with CAHEC
CAHEC’s equity funds have proven a successful investment vehicle for corporations seeking tax credits. Our funds reflect a diversity of investment types: new construction, acquisition and rehabilitation of existing properties, and adaptive reuse developments. We also invest in historic deals that are rehabilitated for mixed-use purposes, and we have a New Markets Tax Credit entity focused on utilizing our New Markets Tax Credit allocations to help finance a range of real estate and community facility developments throughout the Southeast.
CAHEC is known for an exceptional track record of equity investments that have typically been ignored by large for-profit sponsors and syndicators. As a result, we have acquired the expertise, experience, and relationships that enhance our ability to underwrite, close, and asset manage smaller deals (50 or fewer units), communities developed by nonprofits, communities located in non-urban areas, and adaptive reuse developments. For investors with a predominantly rural presence, CAHEC’s market specialization in closing smaller deals (under $3M in net equity) sets us apart in the tax credit industry.
We are careful to protect the interests of our investors by admitting to our funds only those properties that make good economic sense. We are scrupulous in our underwriting practices: each potential CAHEC investment undergoes a rigorous examination by an in-house Technical Review Committee before final presentation to the Investment Committee. Once developments are underway, CAHEC’s nationally-certified asset management team closely monitors their performance to ensure that funds meet or exceed the projected rate of return.
Keeping our investors informed is also important. Investors work directly with CAHEC’s fund development and fund management team. Together, they provide investors with all the necessary resources to ensure their investment’s long-term success. From financial modeling and forecasting to investor reporting, our partners will always feel comfortable and secure working with CAHEC. Investment partners can take advantage of a convenient Web-based portal for accessing and downloading reports.
Compounding our collaboration with our investor partners is our passion for the company’s mission-driven philosophy. Our aim is to meet the needs of our customers and to ensure that our investments’ long-range impact is both sustainable and a catalyst for further community improvements. To this end, CAHEC’s Community Investments are an array of value-added services delivered by CAHEC that include a number of grants and loans designed to invigorate and support historically underserved households and neighborhoods. At CAHEC, not only do we believe in what we do, but we also foster healthy neighborhoods.
Suitability Standards for Qualified Investors
Those interested in making an investment in one of CAHEC’s equity funds must qualify as an “accredited investor” within the meaning of Rule 501(a) of the Securities Act of 1933. Accredited investors under the Securities Act include, among other persons, most financial institutions and insurance companies and any corporation or partnership not formed for the specific purpose of acquiring the securities being offered that has total assets of at least $5,000,000.