Prescott Group Rolls Out Fund Line-Up

(Private Asset Management)

February 27, 2006 - The Prescott Group has added a proprietary fund product to cater to three separate groups of high net worth investors, with fund sizes ranging from $100-$200 million. The New York-based asset management firm is tailoring the private equity real estate funds to the "working wealthy" with $1-$5 million of assets, as well as investors in the $10-$50 million and $50 million or more ranges, said Susan L. Stupin, managing director.

Stupin said the firm is responding to a request from wealth managers for more real estate investment options, and the funds are yielding in the low-to-mid-teens with a standard institutional fee load. The funds can be individually structured to invest in real estate including retail, hotel, industrial, and apartment assets, based on clients' needs and risk appetites. Prescott, which specializes in real estate, offers co-branding to allow managers to include their name on the proprietary funds. "Clients are demanding very attractive returns for a moderate amount of risk, and real estate is an exciting, rapidly growing market that they would like a piece of" Stupin said. "It gives the wealth managers a competitive advantage and provides different funds focused to different types of investors."

The funds are broadly structured to include all product types and geographical areas, and can be deployed in a short time frame of 18-24 months as opposed to an illiquid direct real estate investment. Stupin added that clients are seeking less residential real estate and prefer commercial assets which have comparatively better fundamentals.