Besides big dreams, certain core beliefs were held:
Integrity is our primary core value, the one that governs everything we do. This we will never compromise.
As a small firm, we maintain the highest level of professionalism, with senior level attention to detail, clients and relationships.
The firm’s principal will commit significant amounts of proprietary capital in the investments it manages.
Newman Capital has an enviable track record in real estate private equity investing.
Investments have focused on apartment communities, land lease communities for manufactured homes, real estate operating companies and other special situation real estate related opportunities.
Since the formation of its first investment partnership in 1978, Newman Capital has created numerous real estate private equity investment partnerships. Today, many of those partnerships have been completely harvested yielding substantial investment returns. Our three-decade longevity and overall investment performance through many economic cycles speaks volumes about our strategy, operational skills, dedication and client/ investor relationships.
The size of Newman Capital's investment varies depending on the opportunity and market conditions. Newman generally seeks real estate investments requiring a minimum of $3.0 million in equity capital. Newman will consider smaller investments that provide a platform in a new market, an additional investment with an existing partner, or an add-on acquisition to an existing asset portfolio.
There is nothing like experience when anticipating promising new investment trends. Newman Capital was among the early investors to recognize the many advantages of private equity investment in land lease communities for manufactured homes.
Newman looks for “macro-market” fundamentals of strong population and employment growth together with an economy that is broad based and fairly resilient to economic downturns. Also looked at closely are “sub-markets” as sub-markets can have economic performance much different than the larger market.
Strategic Placements of Capital
While most of Newman’s real estate investments have been made in certain sectors, it monitors real estate markets to identify and then develop the most promising investment opportunities based on asset class and geography. Thus, the firm can react quickly to potential opportunities while developing relationships with key partners in a particular area.
Cash Flow Approach to Investment
The firm’s investment decisions center around the philosophy that future cash flows, not “pride of ownership”, ultimately will determine the value of an asset. Newman Capital has a track record of achieving its investment objectives by attention to detail, rigorous due diligence, using conservative assumptions when projecting future cash flows, and careful assessment of the present and future impact of outside influences on the asset.
While Newman prefers to manage the capital structure of its investments aggressively, it maintains a policy of using prudent leverage on its assets.
While many of Newman Capital’s investment partnerships have been long term in nature, the belief is that the time to formulate the potential exit strategies is during the investment evaluation process. Newman focuses on making investments in high quality assets in superior locations that will likely appeal to a large group of subsequent purchasers. Preferred investments will have multiple exit alternatives including private sales, portfolio transactions within a common asset class and mergers with existing public entities.
Proprietary Deal Flow
Newman Capital welcomes submissions from intermediaries. Newman also seeks to identify proprietary deal flow to create exclusive investment opportunities. Newman will make smaller select investments that establish a platform in a new market or asset class, fund an additional investment with an existing operating partner or expand an existing portfolio.
Joint Ventures and Partnerships
Newman Capital actively seeks joint ventures and partnerships with experienced local real estate operating partners who possess knowledge and insight into local real estate markets and asset classes. Preferred operating partners will have hands-on operating expertise and knowledge along with being a source for proprietary deal flow.
We have extensive experience at managing private and public equity investments in a variety of asset classes.
Newman Capital prides itself on being an active investor with exceptional financial and deal making acumen. Through its longevity and experience in numerous economic cycles, it is accomplished at managing its investments into superior returns.
Graydon Newman, Jr.
Chairman and CIO
Mr. Newman founded the Newman Capital Group in 1972. As Chairman and CIO, he maintains active and overall responsibility for all of Newman Capital’s investment management activities. He is known for a balanced approach that includes opportunity recognition, creation and utilization of resources, and implementation of growth and harvest strategies.
Mr. Newman has more than 30 years of experience as a principal in investment management. As Managing General Partner, he has been directly responsible for the vision and creation, sourcing, structuring, negotiating and capital formation, team selection and development, strategic and tactical plans, and the growth and harvest of all of Newman Capital’s sponsored investment funds.
Mr. Newman is an alumnus of the University of Minnesota, in Business Administration. He has served as a Director of various industry organizations and has been quoted in national publications including the Wall Street Journal as to his views on certain industry cycles.