IPO Preview: Aspire Real Estate Investors Seeks IPO Capital

Morgan Stanley is the lead left underwriter and IPOs led by the firm over the last 12-month period have generated an average return of 41.7% since their …

Aspire Real Estate Investors (AREI) intends to raise $100 million in an IPO of its common stock, according to an S-11 registration statement.

Irvine, California-based Aspire was founded as a REIT to purchase an initial portfolio of nine multifamily projects and develop or acquire additional similar projects, with up to 30% of its portfolio being ‘stabilized and value add properties for which we do not intend to undertake significant redevelopment work.’

Management is headed by president and CEO Daryl Carter, who has been with the firm since the company’s formation in January 2020 and was previously founder, Chairman and CEO of Avanath Capital Management, an investor in multifamily properties.

Below is a brief overview video of opportunity zones:

Source: Break Into CRE

Of the nine initial properties, six are located in Opportunity Zones, which are economically distressed areas where new investments meeting certain conditions are eligible for preferential tax treatment.

The nine initial properties are shown below:

aspireprops

Aspire has received at least $16 million from investors.

According to a 2020 market research report by RealtyMogul, the U.S. market for multifamily real estate is expected to continue to grow, as real estate firm CBRE expects that 280,000 units will come to market in 2020.

However, this was a pre-Covid-19 pandemic estimate and the effects of the pandemic on construction have been significant, at least in the short term

Ultimately, it is the Millennial generation that will drive demand, which may increase outside of large cities as the pandemic persuades increasing numbers of younger persons to move outside the city and into the suburban areas.

With interest rates at a historic low, developers will have friendly financing rates to reduce their financing costs, incentivizing them to build in locales where they previously may not have considered.

Major competitive or other industry participants include:

  • Public REITs
  • Private REITs
  • Private equity investors
  • Institutional investment funds

Aspire’s recent financial results can be summarized as follows:

  • Growing topline revenue
  • Increasing operating income and margin
  • Growing EBITDA
  • A swing to positive net income

Below are relevant financial results derived from the firm’s registration statement:

aspirepl2

Source: Company registration statement

As of June 30, 2020, Aspire had $787,000 in cash and $26.3 million in total liabilities.

Funds from operations in the calendar year 2019 were $2,051,000.

Aspire intends to raise $100 million in gross proceeds from an IPO of its common stock, although the final amount may differ.

Management says it will use the net proceeds from the IPO as follows:

We intend to contribute the net proceeds from this offering and the concurrent private placement to our subsidiary partnership in exchange for interests therein. Our subsidiary partnership will utilize such proceeds to acquire the nine multifamily projects that will comprise our initial portfolio for an aggregate cash purchase price of approximately $260.4 million, to develop or redevelop the six properties in our initial portfolio that are located in Opportunity Zones, and to acquire and, if they are located in Opportunity Zones, develop or redevelop other properties, which may include properties in our acquisition pipeline, and for general corporate and working capital purposes.

Management’s presentation of the company roadshow is not available.

Listed bookrunners of the IPO are Morgan Stanley, B. Riley Securities, Wells Fargo Securities, BMO Capital Markets, and KeyBanc Capital Markets.

Commentary

Aspire is seeking public investment to acquire its initial portfolio and expand its move into affordable multifamily housing located primarily in Opportunity Zones.

The firm’s financials indicate growing topline revenue, increased operating income and a swing to net income in the most recent six-month reporting period.

The market opportunity for acquiring workforce multifamily properties in lower tier cities is currently constrained, according to management, and they believe current cap rates for such properties are between 3.75% and 5%.

It is likely, therefore, that Aspire’s distribution yield will be in that range, perhaps a little higher if the firm proves adept at acquiring or developing properties at above-market levels.

Morgan Stanley is the lead left underwriter and IPOs led by the firm over the last 12-month period have generated an average return of 41.7% since their IPO. This is a top-tier performance for all major underwriters during the period.

Although we don’t have the final proposed terms, Aspire’s IPO would likely be appropriate for an IPO investor interested in steady income in the annual yield range of 4% to 5%.

While it isn’t a high tech firm with much of a one-day ‘pop’ potential, the IPO may be worth considering for income-oriented investors.

When we learn more IPO details, I’ll provide a final opinion.

Expected IPO Pricing Date: To be announced.

Glossary Of Terms

(I have no position in any stocks mentioned as of the article date, no plans to initiate any positions within the next 48 hours, and no business relationship with any company whose stock is mentioned in this article. IPO stocks can be very volatile in the days immediately after an IPO. Information provided is for educational purposes only, may be in error, incomplete or out of date, and does not constitute financial, legal, or investment advice.)

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Morgan Stanley’s WhatsApp woes – How to get hired at Blackstone — Private-equity comp, revealed

The Goldman Sachs logo is seen displayed on an Android mobile phoneOmar Marques/SOPA Images/LightRocket via Getty Images. After a six-month …

Happy Saturday!

It was a busy week for Wall Street news, with fines, exits, pay cuts, and more. Here’s what you need to know:

  • 2 top Morgan Stanley commodities execs have left after the bank discovered the group was improperly using WhatsApp to communicate. A source familiar with the matter told Business Insider the two had displayed a “failure to supervise use of the communications within the commodities business.”
  • Goldman Sachs is paying billions in fines over the 1MDB scandal and cutting exec pay. Here’s what’s been going on inside the bank.
  • JPMorgan is considering hiring as many as 4,000 financial advisors in the next five to six years, wealth boss Kristin Lemkau told Business Insider. The firm has already hired large teams of experienced FAs from rivals including Merrill Lynch and UBS in recent months.
  • Wells Fargo is exploring a sale of its asset management business, Reuters first reported.
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How to ace an interview at Blackstone

Reed Alexander and Casey Sullivan chatted with Blackstone President and COO Jon Gray, industry headhunters, and Blackstone’s global head of human resources to learn what it takes to stand out and get hired at the firm. Here are some of the highlights:

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  • There were 19,000 applications for the firm’s 2020 first-year analyst class, and just 94 were hired, according to data Blackstone shared.
  • “At a place like this, we have relatively few people. And we really need people who care,” Gray said.
  • “I look for too many references to ‘I’ versus ‘we,'” Paige Ross, Blackstone’s global head of HR, told Business Insider. “Most people do things as part of a team, and I want to see candidates accurately reflect that.”
  • You can read the full story here: Blackstone insiders reveal how to land a job at the ultra-competitive private-equity giant

If you’re not yet a newsletter subscriber, you can sign up here to get your daily dose of the stories dominating banking, business, and big deals.

Inside the alumni network of billionaire Israel Englander

Millennium Management, the massive hedge-fund manager founded by the billionaire Israel Englander more than 30 years ago, has a sprawling web of alumni who have gone on to found their own firms.


Bradley Saacks found that more than 70 former employees have launched their own funds across the globe. You can see the full story, database, and graphic here.

Private equity pay, revealed

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While raises weren’t as common as they were a year ago, a majority of respondents to Heidrick & Struggles latest survey on private-equity compensation say they got a pay bump over their 2019 base salary.Associates, even at the smallest funds, averaged nearly $200,000 in base salary and bonus last year. You can see all the data here.

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Why Goldman Sachs and Blackstone are betting billions on data centers

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Demand for data centers has boomed and bluechip investors like Goldman Sachs, KKR, and Blackstone have taken notice, announcing deals and unveiling plans to invest.

On Tuesday, Goldman said it would invest $500 million into data centers around the globe. And as Dan Geiger reports, users continue to take spaces — with ByteDance, the parent of TikTok, signing up for 53 megawatts in Northern Virginia and Bloomberg LP anchoring a huge data-center complex in New Jersey.

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You can read our full analysis here.

The code for Goldman Sachs’ internal data platform is now open for anyone to use

After a six-month pilot period where banks like Morgan Stanley and Deutsche Bank put it to the test, Goldman Sachs’ internal data platform Legend is being released to whoever wants to use it on coding-collaboration site Github.

The bank’s data chief told Bradley Saacks why the firm decided to share something seven years in the making.

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How Deloitte and EY struck gold by helping states with their pandemic responses

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As Samantha Stokes reports, tax and audit firms Deloitte and EY have found business opportunities by contracting with state governments to provide technical support, staffing for unemployment claims centers, and more.

In 10 contracts with four states, the two firms have netted more than $63 million. The contracts were awarded without a bidding process.

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Highlights from this week’s Business Insider Global Trends Festival:

  • Klarna CEO Sebastian Siemiatkowski on why digital retail checkouts are a huge buy now, pay later battleground: “There are a lot of buttons in the checkout. I just want to be the most popular.”
  • Nasdaq CEO Adena Friedman on the future of the cloud: “Do I think in 10 years, that many of the markets around the world, including Nasdaq, could and should be able to leverage cloud to operate their actual trading activities? The answer is yes, I do.”
  • FactSet CFO Helen Shan on how the data giant quantifies innovation: “Speed, reliability, ease of use. People don’t necessarily think of that as innovation, but the reality is that is.
  • AlixPartners CEO Simon Freakley on what’s separated winners from losers in 2020: “One doesn’t have to have an online strategy to be successful, but one has to have a defining strategy.

On the move

Opendoor has hired Daniel Morillo to be the iBuyer’s chief investment officer. Morillo is currently a managing director and head of equity quantitative research at $34 billion hedge fund firm Citadel. Opendoor last month announced plans to merge with Social Capital Hedosophia Holdings Corp II, a SPAC led by venture-capitalist Chamath Palihapitiya.

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Real estate

  • This company is building 3-D printed, small homes on existing residential properties to fight back against California’s housing shortage. Look inside a unit that was move-in ready in one week.

RVShare Raises $100 Million for Recreational Vehicle Rentals: Travel Startup Funding This Week

This week, travel startups raised $125 million in funding for RV rentals, short-term rentals, pod hotels, travel agencies, and flight-free itineraries.

Each week we round up travel startups that have recently received or announced funding. Please email Senior Travel Tech Editor Sean O’Neill at so@skift.com if you have funding news.

This week, travel startups announced about $125 million in funding.

>>RVshare, a rental marketplace for recreational vehicles, said it had raised more than $100 million in a fundraising round.

KKR led the round.

RVshare, based in Akron, Ohio, has processed rentals of luxury motorhomes, campervans, and travel trailers. Guests have booked more than two million days’ worth of travel through the service since its founding in 2013.

“RVs are the preferred accommodation for the more than 40 million U.S. households that go camping each year,” said Ben Pederson, a principal with KKR’s technology growth team. “Younger generations of travelers are discovering and embracing domestic travel.”

For more context, see our earlier story about how RVs have been a rare winner during coronavirus.

>>Limehome, which offers urban apartments with hotel-style amenities in 45 locations in Germany and Austria, has raised about $11.8 million (€10 million) in an extension to its Series A round.

Existing investors HV Holtzbrinck Ventures, Lakestar, and Picus Capital increased their capital investments. This financing the round’s total to about $36 million (€31 million).

The Munich-based hospitality startup will soon open its first locations in Granada, Seville, and Barcelona. Its contactless tech for check-in has proved popular during the pandemic. The company automates a hotel’s conventional processes, such as setting prices, handling reservations and check-in, managing housekeeping, offering customer service, and sending invoices.

“The hotel industry slept through digitization,” said Lars Stänke, co-founder and managing director of Limehome. “Due to our focus on customer needs, concepts such as contactless check-in and access as well as digital invoicing were standard with us from day one. We see that customers are now actively looking for alternatives to the traditional hotel — technology-based models like ours.”

>>CuddlyNest, a travel accommodation booking site and app, has raised $6 million from investors.

The Orlando-based has now raised a total of $10.5 million since its founding in 2017.

CuddlyNest offers hotels, hostels, vacation homes, penthouses, and even recreational vehicles. It aims to charge lower commissions than the global online travel agencies via a booking fee-sharing model with property owners.

“Continuous capital injection into the industry — whether to CuddlyNest or other startups in travel tech — is the clearest indication that investors and stakeholders are optimistic in their forecasting of what is to come,” said Ritesh Raj, CuddlyNest’s co-partner and COO.

>>Stay Open, a startup taking commercial space and re-purposing it to create pod hotels and co-living rentals, has raised $2 million in seed round funding.

A European family office invested with the help of Apex Capital Partners.

The startup’s first project has been in San Diego, where it converted a Budget Rent a Car facility and office building into a 240-bed hotel.

The company’s hotels and residences consist of private modular rooms, each with four to eight private sleeping pods, high-end shared restrooms, large common areas for work or play, food and beverage outlets, and locally-inspired amenities.

>>FindMyAdventure, an online travel site, has raised $600,000 in a seed round from angel investors.

The Karachi-based company, founded in 2016, aggregates travel deals from operators across Pakistan. Komail Naqvi, the founder and CEO, told MENAbytes that without the help of investors and sacrifices from his team, the company wouldn’t have survived the pandemic.

>>Byway, a startup that helps people book flight-free trips in the UK, has received a grant worth about $130,00 (£100,000) from the UK government via Innovate UK, the UK’s Innovation Agency.

The grant takes the London-based startup to a total of about $460,000 (£350,000) in funding for a business founded right in March as the UK introduced a lockdown. The grant is a Covid-19 recovery grant.

Current ground-travel route planners (think Google Maps and Rome2Rio) optimize for speed or cost, while Byway strives to optimize for the experience. At the start, its staff plans custom package holidays in the UK that rely on trains, boats, buses, bikes, and ride-hailing as ways to both reduce greenhouse gas emissions and experience more local flavor.

The startup is building tech to dynamically package multi-modal ground transportation on a per-customer basis.

One of its sample trips gives travelers a self-guided itinerary from Glasgow in Scotland to the Hebridean Isle of Mull. Services like Google Maps will plot that course in about four-and-a-half hours via a train, ferry, and a bit of walking. Byway offers a nine-hour alternative with a kayak ride in Loch Lomond, a visit to port town Oban (home of the famous Oban whisky), a seafood dinner at a well-regarded restaurant, and an evening ferry to Mull.

Skift Cheat Sheet:

We define a startup as a company formed to test and build a repeatable and scalable business model. Few companies meet that definition. The rare ones that do often attract venture capital. Their funding rounds come in waves.

Seed capital is money used to start a business, often led by angel investors and friends or family.

Series A financing is typically drawn from venture capitalists. The round aims to help a startup’s founders make sure that their product is something that customers truly want to buy.

Series B financing is mainly about venture capitalist firms helping a company grow faster. These fundraising rounds can assist in recruiting skilled workers and developing cost-effective marketing.

Series C financing is ordinarily about helping a company expand, such as through acquisitions. In addition to VCs, hedge funds, investment banks, and private equity firms often participate.

Series D, E and beyond These mainly mature businesses and the funding round may help a company prepare to go public or be acquired. A variety of types of private investors might participate.

Global Alternative Data Market to 2026: Growing Utilization of AD to Understand Behaviour …

Alternative data (Alt-data) can be considered as undiscovered data that isn’t inside the domain of customary data sources, for example, SEC filings, fiscal …

Dublin, Oct. 22, 2020 (GLOBE NEWSWIRE) — The “Global Alternative Data Market by Type, Industry Vertical and Region: Industry Analysis and Forecast 2020-2026” report has been added to ResearchAndMarkets.com’s offering.

The Global Alternative Data Market size is expected to reach $11.1 billion by 2026, rising at a market growth of 44% CAGR during the forecast period.

Alternative data (Alt-data) can be considered as undiscovered data that isn’t inside the domain of customary data sources, for example, SEC filings, fiscal reports, official statements, and the management presentation. An Alternative data set can be composed of different sources, for example, e-commerce sites, public records, social media, monetary exchanges, web traffic, cell phones, sensors, satellites, and so on.

On applying explicit analytics on this composed data, it yields extra bits of knowledge that were earlier obscure, and are utilized by investors to assess investment opportunities. As this new data is a significant differentiator that adds to the alpha (market outperformance), the buy-sides elements, for example, hedge funds, mutual funds, private equity funds, pension funds, unit trusts, and life insurance organizations, are effectively utilizing it to construct fundamental investment models to beat the market.

The key drivers credited to the market development include the noteworthy increment in the kinds of Alternative data sources over the last decade. The most well-known sources of alt data are web scarping and financial transactions, the rising sources, including cell phones, social media, satellites, sensors, IoT-enabled gadgets, and others, are gaining extensive prevalence.

Accordingly, the organizations are effectively extending their offering by collecting data from every such source. The rising demand for Alternative data from hedge funds is anticipated to fuel market development significantly. The majority of hedge fund managers are currently utilizing Alternative data to get a competitive edge by producing out-performance and supporting risk management measures.

During the COVID outbreak, the organizations are utilizing Alternative data collected from social media, cell phones, applications, wearables, and other IoT-based gadgets to calculate changes in the behavior pattern of a consumer associated with purchases and interests. The segment related to the transactions with credit and debit cards is foreseen to show the highest CAGR from 2020 to 2026 attributable to the high precision of the data type and high demand from asset administrators.

Key Topics Covered:

Chapter 1. Market Scope & Methodology

Chapter 2. Market Overview

2.1 Introduction

2.1.1 Overview

2.1.2 Executive Summary

2.1.3 Market Composition and Scenario

2.2 Key Factors Impacting the Market

2.2.1 Market Drivers

2.2.2 Market Restraints

Chapter 3. Competition Analysis – Global

3.1 Cardinal Matrix

3.2 Recent Industry Wide Strategic Developments

3.2.1 Partnerships, Collaborations and Agreements

3.2.2 Product Launches and Product Expansions

3.2.3 Mergers & Acquisitions

3.3 Top Winning Strategies

3.3.1 Key Leading Strategies: Percentage Distribution (2016-2020)

3.3.2 Key Strategic Moves: (Product Launches and Product Expansions: 2017, May to 2020, Jul) Leading Players

Chapter 4. Global Alternative Data Market by Industry Vertical

4.1 Global BFSI Alternative Data Market by Region

4.2 Global IT & Telecom Alternative Data Market by Region

4.3 Global Transportation & Logistics Alternative Data Market by Region

4.4 Global Retail & eCommerce Alternative Data Market by Region

4.5 Global Energy & Utilities Alternative Data Market by Region

4.6 Global Media & Entertainment Alternative Data Market by Region

4.7 Global Real Estate & Construction Alternative Data Market by Region

4.8 Global Other Industry Vertical Alternative Data Market by Region

Chapter 5. Global Alternative Data Market by Type

5.1 Global Credit & Debit Card Transactions Alternative Data Market by Region

5.2 Global Mobile Type Usage Alternative Data Market by Region

5.3 Global Web Traffic & Scraped Data Alternative Data Market by Region

5.4 Global Social & Sentiment Data Alternative Data Market by Region

5.5 Global Geo-location, Satellite & Weather Data Alternative Data Market by Region

5.6 Global Others Alternative Data Market by Region

Chapter 6. Global Alternative Data Market by Region

Chapter 7. Company Profiles

  • Nasdaq, Inc. (Quandl, Inc.)
  • Advan Research Corporation
  • Dataminr, Inc.
  • The Earnest Research Company
  • Preqin Ltd. (Dynamo Software)
  • RevenPack International SL
  • Thinknum, Inc.
  • YipitData
  • 1010Data, Inc.
  • Eagle Alpha Ltd.

For more information about this report visit https://www.researchandmarkets.com/r/hqfpda

Research and Markets also offers Custom Research services providing focused, comprehensive and tailored research.

CONTACT: ResearchAndMarkets.comLaura Wood, Senior Press Managerpress@researchandmarkets.comFor E.S.T Office Hours Call 1-917-300-0470For U.S./CAN Toll Free Call 1-800-526-8630For GMT Office Hours Call +353-1-416-8900

Healthtech and greentech dominate the DT50 startup awards

Not all of the categories were won by healthtech startups, however. The two others were focused on “greentech”, technology that helps the environment, …

The winners of the 2020 DT50 awards have been chosen, and the field was led by healthtech and greentech startups.

Even before the coronavirus pandemic struck, healthtech has been one of the hottest areas for European startups.

But since February this year, the need to bring technology to old medical processes — from vaccine discovery to how we book appointments with a GP — has felt even more urgent, with billions pouring into startups in the sector.

It was no surprise then that three out of the five winners of the latest DT50 awards, which is a joint initiative from Google, McKinsey, Freshfields, 468 Capital and Hering Schuppener to recognise European entrepreneurship, were health startups.

The winner of the technology category was iLoF, the UK-based company using AI and photonics (the study of light) to build a cloud-based library of diseases biomarkers with the goal to enable “a new era of personalised medicine.”

“Being rewarded with the DT 50 will help us to empower even more people to lead better, happier lives.”

The startup, which is backed by Microsoft’s venture fund M12, Mayfield, and Melinda Gates’s Pivotal Ventures, hopes to reduce the costs of clinical trials by 40% and the time it takes by 70%, initially focused on Alzheimer’s.

It comes as drug companies around the world are hurriedly pushing forward with clinical trials for a coronavirus vaccine, putting the idea of faster drug discovery front and centre of people’s minds.

The “Best Enterprise Business Model Innovation” was won by a company in a similar area, Ancora.ai, which is a platform helping ordinary people get access to clinical trials — and drug companies get a bigger range of people onto those same trials.

In the “tech for good” category, the winner was HelloBetter, a Berlin-based startup which offers online mental health courses. They have programs for mental issues including insomnia, stress, depression, chronic pain and panic.

This year they started a coronavirus course called “Calm through the Crisis”, helping people work through a difficult time at a moment when many people may not be able to physically see a mental health professional.

Not all of the categories were won by healthtech startups, however.

The two others were focused on “greentech”, technology that helps the environment, which is another area that has seen large investment in recent years and the European Commission has made a priority in its next budget.

One was Lition, a Berlin-based startup, which has established Germany’s first digital marketplace for green energy with a blockchain-enabled platform. It means that producers and consumers are connected directly to trade clean energy, says the company. It won the Consumer Business Model Innovation category.

Finally, there was a special mention for Enapter, which manufactures modular hydrogen generators. The European Commission has made Hydrogen a central pillar of its green energy strategy as well, announcing a new strategy in June this year.

Overall, this year 365 startups applied for the 2020 DT50 awards, coming from 26 European countries. The most applications were for the “Best Technology” and “Tech for Good” categories. Three of the four main winners had teams including a female founder.

The award has been a big boost to previous winners of the award.

“This is a historic moment in healthcare.”

One from last year was PlanA.Earth and founder Lubomila Jordanova said: “Winning DT50 added to our credibility, contributed to a tenfold sales increase and helped us stipulate our position as a sustainability and carbon management tech leader in Europe. We are still bearing the fruits of this success and are really grateful for the opportunity!”

Gerhard Koestler, the CTO of the fintech Raisin, a winner from last year said: “Winning the DT50 is an honour by itself but the fact that it also comes with the offer of workshops and other engagement from the global brands behind the award is more than a bonus.”

“In the workshops organizsd for Raisin — with Google, McKinsey, and Freshfields — we gained real insights and, as you might imagine, unique global overviews. The teams working with us were thorough, investing over and above our expectations and sharing valuable resources with us, making the entire experience of being a DT50 winner a very rewarding experience.”

This year, the winners were similarly delighted.

Hans Klöpper, CEO and cofounder of HelloBetter said: “Being rewarded with the DT50 will help us to empower even more people to lead better, happier lives through our evidence-based psychological online courses.”

Emily Jordan, COO and cofounder of AncoraAI said: “This is a historic moment in healthcare and with Ancora.ai we are meeting this moment with technology designed with and for patients.”

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