Ep.13 Anar Chudgar – Artemis Real Estate Partners

Artemis Real Estate Partners
Artemis Real Estate Partners is a real estate investment firm specializing in acquiring, developing, and managing properties across various sectors. With a focus on opportunistic and value-add strategies, Artemis seeks to generate attractive risk-adjusted returns for its investors. The firm's expertise lies in identifying unique investment opportunities and executing tailored strategies to maximize asset value.
https://www.artemisrep.com/strategy.html

Principal Investing
Investments by merchant banks, investment banks, or advisory firms of the firm’s capital to finance a transaction, as opposed to raising capital from investors. Principal refers to the original capital lent of invested before income or returns are considered.
https://www.nasdaq.com/glossary/p/principal-investing

Investment Banking
Investment banking is a type of banking that organizes large, complex financial transactions such as mergers or initial public offering (IPO) underwriting. These banks may raise money for companies in a variety of ways, including underwriting the issuance of new securities for a corporation, municipality, or other institution. They may manage a corporation's IPO. Investment banks also provide advice in mergers, acquisitions, and reorganizations.
https://www.investopedia.com/terms/i/investment-banking.asp

Capital Formation
Capital formation is the process of getting money ready to deploy into a deal. In real estate, capital formation takes place around three primary events: developing a new property/building, acquiring a new asset (property, building, land), refinancing/recapitalization.
https://blog.stacksource.com/what-is-capital-formation-in-real-estate-d48be82be013

Pension Funds
Institutional investment funds established by employers to provide retirement benefits for employees. These funds often allocate a portion of their assets to real estate investments to diversify their portfolios and generate long-term returns.
https://quickonomics.com/terms/pension-fund/

Endowments
Funds established by institutions, such as universities or nonprofit organizations, to support their ongoing operations. Endowments typically invest in various asset classes, including real estate, to grow their principal and generate income to sustain their mission.
https://www.investopedia.com/terms/e/endowment.asp

J.P. Morgan
J.P. Morgan is a leader in investment banking, commercial banking, financial transaction processing and asset management. J.P. Morgan serves millions of customers, predominantly in the U.S., and many of the world’s most prominent corporate, institutional and government clients globally. Through continued investments, business initiatives and philanthropic commitments, J.P. Morgan aim to help our employees, customers, clients and communities grow and thrive.
https://www.jpmorgan.com/about-us

Asset Under Management (AUM)
Assets Under Management (AUM) refers to the market value of the capital contributed to a fund, from which an institutional firm invests on behalf of its clients, i.e. limited partners (LPs).
https://www.wallstreetprep.com/knowledge/aum-assets-under-management/

Risk Spectrum
Refers to the range of risk levels associated with different types of real estate investments. This spectrum includes core (lower risk, stable income-producing assets), core plus (slightly higher risk with potential for moderate value-add opportunities), value-add (higher risk with potential for significant property improvements and increased returns), and opportunistic (highest risk, often involving development or distressed assets with potential for substantial returns).
https://www.realvantage.co/insights/investing-in-real-estate-know-your-spectrums-first/

Capital Stack
The hierarchical structure of financing used to fund a real estate investment, typically consisting of various layers of capital providers such as senior debt, mezzanine debt, preferred equity, and common equity. Each layer represents a different level of risk and return potential.
https://www.feldmanequities.com/education/everything-you-need-to-know-about-the-capital-stack/

Equity (in capital stack)
A portion of the capital stack consisting of preferred equity and common equity, usually accounting for 30-45% of the total capital stack. Preferred equity is money of the investor that they have contributed themselves, which receives payment before common equity, but has lower upside. Common equity is also an investor’s own money that is put toward the transaction, that is paid last but has the highest upside.
https://www.arborcrowd.com/real-estate-investing-learning-center/capital-stack-and-equity-debt/

Debt (in capital stack)
A portion of the capital stack consisting of mezzanine debt and senior debt, usually accounting for 55-70% of the total capital stack. Mezzanine debt is a secondary loan against the ownership of a property, which has higher returns than senior debt and medium risk. Senior debt is the primary mortgage on a property, which is first to receive payment and has the lowest risk.
https://www.arborcrowd.com/real-estate-investing-learning-center/capital-stack-and-equity-debt/

Core Plus
A real estate investment strategy that combines elements of core and value-add approaches. Core plus investments typically involve acquiring stabilized assets with some opportunities for enhancement or value creation, such as modest renovations or lease-up initiatives, to generate higher returns than core investments while still maintaining lower risk relative to value-add or opportunistic strategies.
https://www.adventuresincre.com/glossary/core-plus/

Opportunistic
A high-risk, high-return real estate investment strategy that focuses on capitalizing on unique opportunities in the market, often involving distressed assets, development projects, or significant repositioning efforts. Opportunistic investors typically seek to achieve above-market returns by identifying undervalued or underutilized properties and implementing aggressive value-enhancement strategies.
https://www.adventuresincre.com/glossary/opportunistic-investment-strategy/

GFC (Global Financial Crisis)
Refers to the severe worldwide economic downturn that occurred from 2007 to 2009, triggered by the collapse of the subprime mortgage market in the United States. The GFC had significant impacts on global financial markets, including the real estate sector, leading to widespread declines in property values, increased foreclosures, and disruptions in credit markets.
https://corporatefinanceinstitute.com/resources/economics/2008-2009-global-financial-crisis/

Credit Suisse
A leading global financial services firm headquartered in Switzerland, known for its investment banking, wealth management, and asset management services. Credit Suisse is recognized for its expertise in various financial sectors, including real estate, and often provides research, advisory, and financing services to institutional clients and investors.
https://www.credit-suisse.com/about-us/en/our-company.html

The Buy-Side
The financial institutions of a free-market economy include a segment called the buy-side: firms that purchase investment securities. These include insurance firms, mutual funds, hedge funds, and pension funds, that buy securities for their own accounts or for investors with the goal of generating a return.
https://www.investopedia.com/terms/b/buyside.asp