Investment Program
Hongkun Capital strives to empower real estate investors with global reach and exceptional performance. To accomplish this, we have incorporated a stringent risk control program applying it across our real estate investment portfolio through innovative strategies, healthy risk/return balances, and diversified property assets.
Below are the investment strategies we engage in.
U.S. Core/Core+
This strategy encompasses our core investment in the U.S. real estate market. This strategy invests in high-quality, income-producing assets in select U.S. metropolitan markets across various property types on behalf of limited partners.
U.S. Real Estate Debt
This strategy encompasses investment in U.S. commercial real estate debt, through closed- and open-end fund vehicles, secured by strategically-located properties.
U.S. Mixed-used/Multifamily Value-add Real Estate
Leveraging deep knowledge of real estate, strategic planning and property management, this strategy encompasses our investment in existing mixed-use and multifamily properties in the U.S. Value-Add real estate market. The properties in this investment area offer potential to enhance the overall value of our portfolio through added revenue.
Market Products
Hongkun also diversifies across a variety of market investment types, to encourage a more robust and risk-protected portfolio, as well as accommodate varying preferences from investor to investor.
Top-Tier Markets
Hongkun Capital invests in Tier 1 markets in the U.S., including New York City, Boston, Washington DC, and San Francisco. Investing across a wide variety of project types enables Hongkun Capital to participate in investments of high quality and minimize risk.
Mature Projects
Hongkun Capital looks to minimize risk and enhance investment returns through strategic selection of development projects, particularly projects with minimal uncertainties related to the entitlement process or predevelopment.
Trusted-Partner Investment Programs
We partner with experienced third-party venders who meet the high-quality caliber of service standards we adhere to, to ensure proper operation and administration of all investments.
Stable-Returns Projects
We invest in markets that have strong demand outlook and avoid those markets with surplus of product supply, to promise generous returns and steady cash flow for our investors.
Risk Management
Risk Management is holistically integrated into our investment platform and end-to-end process, from initial project analysis to post-investment management. At Hongkun Capital, we work to manage risk in three vital areas: Investment Risk, Operational Risk, and Organizational Risk.
Investment Risk
- Independent research and analysis-backed project selection and screening procedures
- Strict and standardized due diligence process
- Partnership with holding companies with top earning potential and free cash flow
- Strict focus on valuation
- Diversified portfolio allocation
Operational Risk
- Compliance controls that adhere to initial investment guidelines
- Monitoring by independent third party venders that check management and administration of our funds
- Trading systems designed to prevent violations of our guidelines
- Off-site disaster recovery capacity
Organizational Risk
- Team-based portfolio management
- Specialized staff with expertise across different areas of investment and risk management
- Partner approach wherein staff incentives align with client returns
Risk Management Process
