Investment Philosophy

The investment mission of Everest Holdings is to serve as a vehicle for its investors to achieve the optimal balance of risk and return. The company’s Investment Priorities are designed to capitalize on opportunities as they arise and execute strategies afforded throughout the cycle. Our investments may include single assets or portfolios of Multifamily, Residential and/or Commercial Land, Mixed Use, Office and Hotels.

Historically, real estate investment performance has been subject to several types of cycles. Everest recognizes the cyclical nature of the real estate industry and assesses real estate as a commodity with windows to buy, hold and sell. The exit is as important as the acquisition. Everest begins with the foundation that prudent and profitable investment alternatives can be achieved throughout cycles. We believe all investing is measured by risk and reward; therefore, we place a premium on protecting and preserving capital and performing a comprehensive risk-reward analysis on each asset. Value is added through asset and financial restructuring, by attracting superior management, and through capital markets expertise. We align our interests with those of our investment partners - placing our own capital at risk on every transaction and receive our returns only when our partners receive theirs.

Everest recognizes that real estate investing cannot be considered in isolation from other investment alternatives and economic considerations. In addition to property market fundamentals, the relative position of other major asset classes such as stocks and bonds, and the direction and intensity of capital flows are major determinants of real estate values. As a result, we remain flexible in our approach, basing our investment decisions on shifting macroeconomic and demographic realities, rather than a predetermined thesis. Above all, we are guided by common sense, discipline and the recognition that intellectual humility is the centerpiece of consistent and successful investing. Our assumptions are continually reexamined, focusing on improving our performance and separating luck from skill.

To identify potential opportunities, Everest analyzes the underlying real estate supply/demand fundamentals, as well as capital markets flows. Investments are only made at the equity level of the capital structure. We seek to capitalize on dislocations in the capital markets created by disruptions, turbulence or a void following a period of oversupply. Our approach is to anticipate market movements shifting from asset class to asset class, as market conditions warrant.

Asset management offers critical input to the acquisition process. An interactive process coordinates underwriting assumptions with direct knowledge of local market conditions, costs and revenue expectations. These critical assumptions then become the operational benchmarks by which asset managers are guided and evaluated in on-going management responsibilities.

Backing our approach are the principles of innovation, integrity, perseverance, intellectual discipline, honesty and common sense – as well as an ethical and responsive handling of our relationships. While the nature and composition of our business may evolve, the way we conduct business and the quality of our people will remain the same.

Of prime importance is that all of Everest’s executives are principals. Everest executives invest in every transaction sponsored by the firm - our executives think like owners because they are owners. We strive to preserve and protect investor capital, recognizing that doing the right thing for investors pays off in the long term.

Everest’s Value Proposition

Excellent purchase economics. Everest targets assets that have discounts to reproduction cost and excellent potential to create near- to mid-term growth in net cash flows.

Value-added potential. Everest works to maximize the value of assets through superior real estate management.

Regional market strength. Everest invests primarily in the southwestern region of the United States, a region of tremendous historical and projected growth.

Diligence. One of the Everest team’s strongest skill sets includes the management of the due diligence process surrounding the purchase of complex real estate assets.

Skin in the game. We invest alongside our partners in every transaction.