Why Lotus Capital
WHAT WE DO
Lotus Capital is a Real Estate Private Equity Firm that enables busy people to invest in high-grade multifamily investments, a robust asset class often acquired by hedge funds and institutional investors – without all the hassle of being a landlord or an asset manager/operator.We aggregate the power of many, through real estate syndications led by some of the most respected operators in the U.S. and invest in thoroughly screened and conservatively underwritten multifamily assets that generate steady lucrative returns and favorable tax treatment.
We are a group of experienced professionals, who are constantly on the lookout for the right deals. We underwrite conservatively and have a rigorous criteria that has enabled us to create a strong track record of delivering 8-20% annual returns to our investors.
We invest in our own deals! That’s right – we walk the walk and our management puts their personal capital in the same opportunities that we offer to our investors. You will be hard- pressed to find another private equity firm that does the same!
With our strong broker relationships and partnerships across many geographies, we offer valuable portfolio diversification outside of stock market through tangible asset ownership.
We ensure a hassle-free investing experience and on investing you will receive regular updates on your investment, clear communication and steady passive income distributions directly to your bank account. We make your money work hard for you so you don’t have to.
We spend a lot of time in educating our potential investors on the ins and outs of multi-family investing, and like to get to know you before you invest with us. If you’d like to learn more, join our investor list or contact us with any question you have.
Our strategy is to focus on the following areas to seek opportunities
We primarily invest in markets with low unemployment, growing population, strong job growth, year-over-year rent growth, and low vacancy rates. We don’t just go based on recent trends but analyze the drivers of the growth to assess the permanence of the trends (e.g., is job growth driven by a temporary surge that reset in 3 years).
We invest only in value-add real-estate. This means, we only invest in opportunities, where we see a clear strategy to improve the net operating income, and hence the sale price. In other words, we can “force” appreciation on the property vs. simply speculating an appreciation.
We invest primarily in Class B and C apartment buildings and manufactured home communities. These tend to be value rentals for the working class families. We find that these properties are much more resilient to economic cycles, and also command favorable tax treatments.
We also only invest in stabilized properties. This means, at purchase, the property is already more than 90% occupied, and is generating steady cashflow. This again allows us to minimize the risk profile of the investment.
More recently, Lotus Capital has also begun to invest in growth stage venture backed companies. This asset class presents a different risk reward profile where returns could average 3-10X on successful transactions.
We only invest in opportunities where we can generate >8% cashflow annually and double digit total annual return (inclusive of equity and value appreciation) over 3-5 year hold period. More than half of the total returns are from steady quarterly cashflow disbursements vs. equity appreciation realized at sale.
We are uncompromising with our performance criteria in our deals and we do rigorous analytical and strategic evaluation of every deal to find the “right one”. We underwrite and evaluate scores of deals before we decide to bring it to our investors. In our focus markets, we have strong broker relationships who often offer off-market deals to us. We place a much bigger premium on finding the right deal vs. simply closing deals and moving to the next one.
OUR CORE VALUES
Our investors are a part of the Lotus family and their trust and faith in us to protect and grow their hard earned money is our privilege. This is our first responsibility! We strive tirelessly to maximize investor returns.
Integrity in business is second nature whether we work with an investor, an employee, resident or a professional partner.
We are honest, clear and open in our communication and expect the same from our partners.
As competitive as business is, we are always looking beyond a “zero-sum” mindset, for opportunities to collaborate, even with our competitors. We pride ourselves in finding opportunities which are so often missed in “business as usual” to forge all-win partnerships.
WHO WE ARE
Before founding Lotus Capital in Greenwich CT, Anar led Global Client Operations at Gartner Inc in Stamford CT. She delivered double digit improvement in client retention and business growth for key business lines in Gartner through operational excellence. Prior to Gartner, Anar worked at McKinsey & Company and advised C-suite clients in healthcare, consumer retail and government. Anar graduated with an MBA from Johnson School of Cornell University from Ithaca, New York. Anar has a Bachelors in Engineering from Nanyang Tech. University in Singapore.
Principal and strategic advisor
Kalyan Jonnalagadda is a Partner at Bain & Company in New York and advises private equity and healthcare leaders. He has an MBA from Johnson School of Cornell University from Ithaca, New York. At Lotus Capital he helps guide the strategic vision and growth of the firm.