CSA 2 Multi-Manager Real Estate Global Asset Management - Credit Suisse
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CSA 2 Multi-Manager Real Estate Global
Asset Management
Credit Suisse Asset Management (Switzerland) Ltd.
Equities l Indirect Real Estate
May 2020
For qualified investors only under the Swiss Collective Investment
Schemes Act ("CISA").
CSA 2 Multi-Manager Real Estate Global
An investment group of Credit Suisse Investment Foundation Pillar 2
Investment group invests
NAV as price basis for the Proven structure, exclusively
globally in non-listed real
product and the target funds for Swiss PVEs
estate funds
Investment foundation and
Core Plus investment group supervised Hedged in CHF
Target return1 of 5%–7% by Occupational Pension Target hedge ratio
(hedged in CHF) Supervisory Commission, of 95%
audited by PwC
Source: Credit Suisse
1 The target return is the IRR in CHF after foreign currency hedging and is based on a long-term investment horizon. Target return is not a projection, prediction, or guarantee of future
performance, and there is no certainty that the target return will be achieved.
Please also note the risks on page 14.
Credit Suisse Asset Management (Switzerland) Ltd. The disclaimer mentioned at the end of this document also applies to this page. May 2020 2
Agenda
1 Investment rationale
2 Product information
3 Investment process
4 Annex
Credit Suisse Asset Management (Switzerland) Ltd. The disclaimer mentioned at the end of this document also applies to this page. May 2020 3
Investment rationale
Important reasons to invest
For many institutional investors, international real estate is Diversification
still an underweighted asset class. Real estate investments can achieve good diversification with
While around 56% of the investment volume in equities is invested respect to existing investments, since the former have a low
internationally, the average for real estate is only around 12%.1 correlation with other asset classes such as equities and bonds.
Within the international real estate segment, a high diversification
Added value through active management effect is also achieved through different target funds, target fund
Analysis and navigation of the global non-listed real estate fund managers, geographical criteria, sectors and risk profiles as well as
universe requires focused expertise and the maintenance of an investment timing.
extensive network of real estate fund managers and other fund
managers. By actively managing the entire portfolio, significant Leading provider
added value can be achieved over individual, isolated investments. Credit Suisse Asset Management Indirect Real Estate is a trusted
partner with focused expertise and institutional investment
Moderate volatility and low correlation with equities standards.
Non-traded/non-listed investment vehicles show significantly lower
volatility than listed investment products and, in particular, have a
lower correlation with equity markets.
Partial protection against inflation
A long-term investor receives partial inflation protection with an
investment in real estate assets, as rents automatically adjust to
inflation in the medium term.
1 Source: Credit Suisse Swiss Pension Fund Index Q1 2020
Credit Suisse Asset Management (Switzerland) Ltd. The disclaimer mentioned at the end of this document also applies to this page. May 2020 4
Investment rationale
International real estate investment segment
Investments in international real estate may be made directly or indirectly.
Direct/indirect Whereas direct real estate investments are made either directly in individual properties or via property
investments in real companies, indirect investments are made via investment vehicles such as funds and similar structures.
estate
In addition to publicly traded indirect securities with real estate investments (listed), there is a broad
Traded/ range of non-traded investment vehicles (non-listed) abroad.
non-traded These differ from publicly traded securities not only in their legal form, but also in terms of liquidity and
investment volatility.
vehicles Non-traded investment vehicles generally have lower volatility and a lower correlation to equity markets,
but have lower liquidity as they are non-transferable or transferable only to a limited extent.
International real estate
Direct Indirect
Focus of CSA 2
Multi-Manager Non-listed real estate funds Listed real estate funds
Real Estate Global
Lower Liquidity/volatility Higher
Source: Credit Suisse
For illustration purposes only
Credit Suisse Asset Management (Switzerland) Ltd. The disclaimer mentioned at the end of this document also applies to this page. May 2020 5
Non-listed real estate funds
Investment styles
Low Risk High
Investment style Core Core Plus Value Add Opportunistic
Risk Low to average Average Average to high High
Leverage (LTV) ≤ 40% 30% to 60% > 40% to 60/65% ≥ 65%
Occupancy level High Well occupied Leasing potential Turnaround
> 90% 75% to 95% 60% to 80% 0% to 70%
Target exposure ≤ 5% > 5% to ≤ 25% > 25%
to project
developments
Return composition Current income orientation Current income and capital Capital appreciation and current Capital appreciation
appreciation income
Real estate type and Existing, stabilized Existing, stabilized properties Properties with upside potential Underutilized assets in need of
location properties Well tenanted, central, slight realized through asset major repositioning
Well tenanted, central and deviations accepted management Development projects
stable income returns Capital appreciation through Refurbishments, less centrally Less centrally located or in
Long-term leases rental growth and/or modest located emerging markets
Strong tenant credit lease up
Holding period Unlimited Unlimited Typically seven to ten years Typically five to eight years
Current income orientation Focus on capital appreciation
Sources: INREV, Credit Suisse
For illustration purposes only
Credit Suisse Asset Management (Switzerland) Ltd. The disclaimer mentioned at the end of this document also applies to this page. May 2020 6
Real estate for diversification
Stable income yields
Correlation
2000-2019 between different asset classes
Equities Bonds global REITs global Non-listed global Non-listed real estate funds as a suitable addition
global real estate to a diversified portfolio due to their low correlation
Equities global 1 -0.09 0.86 0.44
with equities and bonds
The risk profile of non-listed real estate
Bonds global 1 -0.11 -0.08 investments lies between that of bonds and
REITs global 1 0.52 equities
Non-listed global real 1
High international diversification for non-listed real
estate estate investments due to low cross-border
correlation
Attractive and stable income yields over the cycle
in the current zero/negative interest rate
Stable and substantial distribution component environment
MSCI IPD Global Real Estate Index (Asset Level)
20%
15% 15.0% 14.5%
10% 10.8% 10.5% 9.9% 10.7%
8.2% 8.9% 8.9% 8.3% 7.9%
7.1% 6.5% 7.0% 7.4% 7.3% 6.5%
5%
% p.a.
0%
-5% -5.5%
-7.3%
-10%
-15%
Dec Dec Dec Dec Dec Dec Dec Dec Dec Dec Dec Dec Dec Dec Dec Dec Dec Dec Dec
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Standing Investments Income Return Standing Investments Capital Growth Standing Investments Total Return
Sources: MSCI, Credit Suisse; last data point: December 2019
Historical performance indications and financial market scenarios are not reliable indicators of current or future performance.
Credit Suisse Asset Management (Switzerland) Ltd. The disclaimer mentioned at the end of this document also applies to this page. May 2020 7CSA 2 Multi-Manager Real Estate Global
Global network and local expertise
All invested target funds combined have over 8,700 employees in the real estate sector,
of whom more than 3,400 are real estate investment experts
Europe
> 1,000
America
> 1,900
Asia/Pacific
> 500
Source: Credit Suisse
All information as at 31.12.2019
Credit Suisse Asset Management (Switzerland) Ltd. The disclaimer mentioned at the end of this document also applies to this page. May 2020 8Agenda
1 Investment rationale
2 Product information
3 Investment process
4 Annex
Credit Suisse Asset Management (Switzerland) Ltd. The disclaimer mentioned at the end of this document also applies to this page. May 2020 9Investment process
Multi-Manager Real Estate Global
Filtering of the investment universe
(>1,000 target funds)
Investment guidelines Investability
Due diligence
Legal Business Tax
Consideration of other, fund-
independent factors
(esp. macroeconomic assessment)
Source: Credit Suisse Portfolio construction
For illustration purposes only
Credit Suisse Asset Management (Switzerland) Ltd. The disclaimer mentioned at the end of this document also applies to this page. May 2020 10Multi-Manager Real Estate platform
Transaction structures
Investment in a target fund through standard subscription
1 2 1 process
Primary market Late/final close
investments investments Invest in the final close of a closed-ended target fund
2
3 4 3 Acquire fund units through the secondary market from an
existing investor
Secondary Club deals
market
investments Invest in a fund with two to five other limited partners
4
5 Supporting a manager in launching a new fund by
Seed Successful 5 providing seed capital
investments Fundrasing
Co-invest in a property held by a target fund that is too
6 large for single ownership
6
Co-investments
Source: Credit Suisse
Credit Suisse Asset Management (Switzerland) Ltd. The disclaimer mentioned at the end of this document also applies to this page. May 2020 11CSA 2 Multi-Manager Real Estate Global
Portfolio as at March 31, 2020 based on invested capital
Sector allocation Allocation by investment style
70% 3%
Investment guidelines Current allocation
60% 12% 2%
50%
40%
34%
30%
25% 23%
20%
10% 8% 9%
0% 2% 83%
-10%
Office Retail Residential Logistics Others* Liquidity
Core Value-added Opportunistic Liquidity
Regional allocation Allocation by structure
80% 16%
Investment guidelines Current allocation 2%
70%
60%
50%
40% 44%
38%
30%
20%
16%
10%
0% 2% 82%
-10%
Americas Europe Asia-Pacific Liquidity
Closed-end Open-end Liquidity
Source: Credit Suisse
* The allocation to "other" sectors mainly consists of exposure to medical offices, senior housing, self-storage and student housing. This is an indicative asset allocation that may change
over time.
Credit Suisse Asset Management (Switzerland) Ltd. The disclaimer mentioned at the end of this document also applies to this page. May 2020 12Product information
Key facts, CSA 2 Multi-Manager Real Estate Global
Investment policy Product information
The broadly diversified portfolio consists of Investment strategy Core Plus
international real estate funds. The target real estate Geography Global except Switzerland (Americas, Europe, Asia/Pacific)
funds are not traded and invest, for their part, in Sectors Office, retail, housing, logistics, other
properties in the respective target markets
Launch October 4, 2016
(Americas, Europe, Asia/Pacific).
Base currency CHF
CSA 2 Multi-Manager Real Estate Global pursues a
Core+ investment strategy, with most investments Currency hedging Foreign currency risks largely hedged in CHF
taking place in the core segment and additional, Portfolio buildup phase Four years
targeted investments in the Value Add and Subscriptions Capital commitments
Opportunistic segments. Redemptions Quarterly (after end of holding period)
Subscription fee None
Redemption fee 2% (remains in investment assets)
Period of notice 12 months
Target IRR (CHF) p.a. 5%–7%1
Share class Minimum investment volume Management fee p.a.2 Qualified investors
A CHF 1 mn 0.70% PVE
L CHF 10 mn 0.58% PVE
M CHF 20 mn Volume-dependent graduated tariff PVE
Source: Credit Suisse
1 Target return based on a long-term investment time horizon. Target return is not a projection, prediction, or guarantee of future performance, and there is no certainty that the target
return will be achieved.
2 This fee may be changed at any time and without notification to investors.
Credit Suisse Asset Management (Switzerland) Ltd. The disclaimer mentioned at the end of this document also applies to this page. May 2020 13CSA 2 Multi-Manager Real Estate Global
Benefits and risks
Benefits Risks
Easy access to selected real estate managers worldwide, active Limited liquidity compared to listed investment products
management and low minimum investment Real estate fund values may fluctuate (for instance, because of
Structured investment process and experienced investment unfavorable changes in economic circumstances, interest rate
team with successful track record in global real estate developments or unfavorable local market conditions)
investments and a representative from research and teaching Risks associated with the purchase, financing, ownership,
Very high diversification (by region, sector, manager, building operation, and sale of real estate
type, tenants, market cycle) Legal and tax risks associated with investments in real estate
Professional management with many years of experience and funds
an outstanding track record in global real estate investments as
well as access to the global network and expertise of Credit
Suisse Asset Management’s real estate and equities teams
The investment objectives, risks, fees and expenses, and other information relating to this product can be found in the prospectus, which should be read carefully before investing.
Credit Suisse Asset Management (Switzerland) Ltd. The disclaimer mentioned at the end of this document also applies to this page. May 2020 14Agenda
1 Investment rationale
2 Product information
3 Investment process
4 Annex
Credit Suisse Asset Management (Switzerland) Ltd. The disclaimer mentioned at the end of this document also applies to this page. May 2020 15Investment Committee
John Davidson Sven
Professor Dr. oec. publ., Christoph Bieri Filippo Rima Schaltegger
CAIA CEFA CFA MRICS, CFA, CAIA
Professor John Davidson began his career Christoph Bieri, Director, is Head of the Filippo Rima is Managing Director of the Sven Schaltegger, Director, is Senior
as a member of the Alternative Funds Indirect Real Estate team. He studied Private Banking & Wealth Management Portfolio Manager in the Indirect Real Estate
Advisory private equity team for UBS Global business administration and economics at division in Zurich. He is Head of Equities in team. He holds a master’s degree in finance
Asset Management in Zurich, where he the University of Bern, qualified as a Certified the Asset Management business. Filippo with "magna cum laude" distinction from the
served until 2005. After that, he joined Swiss International Investment Analyst (CIIA) at the Rima joined Credit Suisse Asset University of Zurich and is a CFA charter
Re, where he was one of the chief architects Swiss Training Centre for Investment Management in September 2005 from holder, CAIA charter holder, and a member
of a global portfolio of indirect real estate Professionals (AZEK) and in 1988 earned a Winterthur Asset Management, where he of the Royal Institution of Chartered
investments with 27 institutional real estate certificate of proficiency for real estate was a senior portfolio manager on the equity Surveyors (MRICS). Before he joined Credit
funds and a volume of CHF 1.4 billion. Major fiduciaries. After working on a construction team. Prior to that, he worked at a private Suisse in 2016, he was a senior manager
activities included selection of funds, due statistics project for the Swiss Federal Swiss bank for four years as an equity and head of real estate M&A at
diligence coordination and portfolio Statistical Office for three years, Christoph analyst. Filippo Rima holds a degree in PricewaterhouseCoopers Switzerland. Prior
management, as well as representing Swiss joined Zürcher Kantonalbank in 1994 as a business administration from the University of to that, he worked at SCM Strategic Capital
Re on respective advisory boards. Since the financial analyst for the banking and real St. Gallen (HSG) and a degree in civil Management (now Mercer Private Markets)
fall of 2009, Professor John Davidson has estate sectors and was a member of the engineering from the Swiss Federal Institute and Partners Group (PG) as a real estate
been Co-Head of Real Estate at the Lucerne structured Swiss equity mandate team. In of Technology (ETH) in Zurich. He is a CFA investment manager. At PG, he was a
University of Applied Sciences and Arts. 1999, he started working at Banca del charter holder and a member of the Index member of the investment committee for a
Gottardo, where he was responsible for Commission of the SIX Swiss Exchange. listed real estate fund. After completing his
setting up the Swiss equity research team. studies, Sven Schaltegger was first
Christoph joined Credit Suisse in 2002 as a employed at UBS Global Asset
Portfolio Manager, where he set up the Management, where he worked in global real
Indirect Real Estate product group he estate product development and
continues to manage. management in Zurich, and later as a Junior
Portfolio Manager of a Core+ fund with UBS
Realty Investors in Hartford, Connecticut,
US.
Credit Suisse Asset Management (Switzerland) Ltd. The disclaimer mentioned at the end of this document also applies to this page. May 2020 16Expert Board
John
Davidson
Professor Dr. oec. Werner Heinz
publ., CAIA
Richli Tschabold
CEFA CAIA
Werner Richli, Director, is a Senior Heinz Tschabold, Director, is a Senior
Portfolio Manager in the Indirect Real Portfolio Manager in the Real Estate
Christoph Estate team. He graduated in business Securities team. He graduated in
administration from the University of Business Administration from the
Bieri Zurich and is a Certified Financial Analyst University of St. Gallen (HSG) and has a
CEFA and Asset Manager (TCIP). From 1987, master’s degree in finance. Following his
he worked as a financial analyst in Credit academic studies, he worked as financial
Suisse Investment Banking and assisted analyst at UBS Warburg and assisted
various companies such as Kaba, Swiss companies in the machinery and
Swisscom, Geberit, and Swiss Prime Site electrical engineering fields. In 2002, he
with their initial public offerings. In 2003, joined Credit Suisse and was responsible
he joined Credit Suisse Asset for implementing quantitative models in
Management. There, he developed real the real estate sector. Since 2006, he
Filippo Rima has been responsible for mandates in the
estate research and was responsible for
CFA the asset allocation of the first real estate area of international real estate
fund investing internationally, Real Estate investments. As portfolio manager of the
Fund International. This was followed in Credit Suisse (Lux) European Property
2006 by the development of the mandate Equity Fund, he is also responsible for the
business for international real estate selection of companies and funds from
Sven investment and the management of the German-speaking markets.
Schaltegger Credit Suisse (Lux) Infrastructure Equity
MRICS, CFA, Fund.
CAIA
Credit Suisse Asset Management (Switzerland) Ltd. The disclaimer mentioned at the end of this document also applies to this page. May 2020 17Portfolio Management (1/2)
Sven
Schaltegger
MRICS, CFA,
CAIA
Lead Portfolio
Manager
Philip Signer
Fabian Egg
CFA
Philip Signer, Assistant Vice President, is an Fabian Egg, Assistant Vice President, has worked in the
investment professional in the Indirect Real Estate Indirect Real Estate team since 2019. He graduated with
Heinz team. He holds a master’s degree in banking and a first class honors degree in management studies (BSc)
finance from the University of St. Gallen (HSG), from the London School of Economics and initially
Tschabold complemented by studies at the Seoul National worked for Goldman Sachs in London, focusing on the
CAIA University (SNU) in South Korea, and is a CFA acquisition and asset management of Pan-European Real
Charterholder. Before joining Credit Suisse in 2015, Estate and Distressed Debt. During his three years at
Philip worked in Investment Management at Zurich Goldman Sachs, he also worked for the Mortgage
Insurance Group as an Investment Performance Trading team in New York and Dallas, gaining experience
Analyst. He then joined Credit Suisse, working in in the American market.
Advisory Portfolio Management in the Investment
Solutions and Products area, and was responsible for
the construction and optimization of multi-asset-class
portfolios for advisory clients.
Credit Suisse Asset Management (Switzerland) Ltd. The disclaimer mentioned at the end of this document also applies to this page. May 2020 18Portfolio Management (2/2)
Fabian Stäbler Marcel Kaufmann
Dipl.-Ing. FH Lic. oec. HSG
Fabian Stäbler, Director, is a Product Specialist in the Indirect Real Estate team Marcel Kaufmann screens and selects real estate funds in the Indirect Real
and Business Manager in Asset Management Equities. He studied business Estate team. He holds a master’s degree in strategy and organization from the
engineering at the University of Applied Sciences and Arts Northwestern University of St. Gallen and studied at SNU Seoul National University on the
Switzerland (FHNW). Fabian joined Credit Suisse in 2009 and worked initially as MBC program. He was a partner at Advanta Capital, a private equity advisory
Business and Project Manager in Asset Management Switzerland & EMEA in company that he co-founded, built up and sold. Before that, he worked as a
Zurich. After working in Asset Management in Hong Kong in 2011, he led the private markets investment professional for SCM Strategic Capital Management
expansion of the Asset Management area in Singapore. In 2013, he became (today Mercer Private Markets), Evolvence Capital (Dubai, UAE) and Swiss Re,
local COO for Asset Management in Singapore and was then responsible for where he was responsible for sourcing, evaluating and executing private equity,
supervising local activities, product and platform management as well as infrastructure and real estate transactions (primaries, secondaries, co-
business and strategy development. Before joining Credit Suisse, Fabian worked investments).
for four years for Swiss Life Asset Management as a Business Process
Engineer and Business Analyst.
Credit Suisse Asset Management (Switzerland) Ltd. The disclaimer mentioned at the end of this document also applies to this page. May 2020 19Environmental Social Governance (ESG)
An integral part of due diligence
The selection of investments follows a structured, broad-based investment process that takes both quantitative and qualitative
criteria into account.
Potential investment opportunities undergo a detailed due diligence process, taking ESG-related factors into account as part
ESG in the
of the assessment.
investment
process The Global Real Estate Sustainability Benchmark (GRESB) is analyzed as the leading ESG rating for all new and existing
target funds.
In addition, other common ESG standards, ratings and guidelines are analyzed at the building, fund and fund manager levels.
CSA 2 Multi-Manager Real Estate Global – since October 2016
78 62%1 of the funds have a GRESB rating
80%2 of the invested capital has a GRESB rating
GRESB 78/100 2 – weighted average (based on GRESB rated funds)
ESG profile of
CSA2 Multi-
Manager Real
Estate Global
fund
Other ESG
standards/
ratings/ Various ratings and standards like LEED, BREEAM, Energy Star, UNPRI, etc.
programs
Proprietary policies, standards and ESG reports of target funds
Source: www.gresb.com
1 Based on Q1 2020 data or latest available GRESB rating
2 Based on invested capital in Q1 2020
Credit Suisse Asset Management (Switzerland) Ltd. The disclaimer mentioned at the end of this document also applies to this page. May 2020 20Agenda
1 Investment rationale
2 Product information
3 Investment process
4 Annex
Credit Suisse Asset Management (Switzerland) Ltd. The disclaimer mentioned at the end of this document also applies to this page. May 2020 21CSA 2 Multi-Manager Real Estate Global
Subscription and redemption
Subscription Redemption
Issuance of shares by means of capital calls The shares can be redeemed quarterly as at the end of a
quarter, subject to a notice period of twelve months
Capital calls are announced with a notice period of seven
days A redemption fee of 2% is levied (remains in investment assets)
Issued at NAV at the end of the previous quarter
No subscription fee is charged Year n
End of quarter 1 End of quarter 2 End of quarter 3
Notice deadline Notice deadline Notice deadline
Capital call Capital call
Announceme Call Announceme Call Notice Notice Notice Notice
nt (T-7 (TD) nt (T-7 (TD)
calendar calendar Redemption
Capital commitment Redemption Redemption Redemption
days) days)
Value date Value date
redemption redemption
End of End of End of End of End of (T+30 bank (T+30 bank
quarter 1 quarter 2 quarter 3 quarter 4 quarter 1 working days) working days)
Year n+1
Issued at NAV at Issued at NAV at
the end of the the end of the End of quarter 4 End of quarter 1 End of quarter 2
previous quarter previous quarter
Price Price
Price
determination determination
Source: Credit Suisse determination
For illustration purposes
Credit Suisse Asset Management (Switzerland) Ltd. The disclaimer mentioned at the end of this document also applies to this page. May 2020 22Annex
Anchored in Switzerland, a global platform and worldwide real estate
expertise
Fund administration Fund management
Credit Suisse Investor Services Portfolio Management
Investment Office Business Management
Investment Committee
London
Zurich Expert Board
New York
Milan
Private Fund Group (PFG)
Private Fund Group (PFG)
Real Estate Global – Asia/Pacific
Real Estate Global – America Real Estate Global – Europe Singapore Real Estate Investment Management
Real Estate Investment Management Real Estate Investment Management Real Estate Asset Management
Real Estate Asset Management Real Estate Asset Management
Credit Suisse Investment Foundation
(CSA) Global Real Estate Research Marketing
Investment Foundation management Analysis and assessment of global real estate
Sales support
Product management markets
Legal & Compliance Risk Management Global Tax Adviser
Legal clarifications and due diligence Investment risk analysis Tax due diligence (external)
Source: Credit Suisse
Credit Suisse Asset Management (Switzerland) Ltd. The disclaimer mentioned at the end of this document also applies to this page. May 2020 23Multi-Manager Real Estate platform
Detailed investment process
Worldwide Credit Suisse network (including Global Real Estate, Real Estate Research and Private Fund Group)
Investment Subscription Monitoring/
Sourcing Due diligence
committee process controlling
Screening of the Business Legal Tax Investment decision Subscription/KYC/ Monitoring of
fund universe due diligence due diligence due diligence AML funds and guidelines
Proactive fund Fund manager Analysis of fund Analysis of tax Portfolio allocation Subscription Complying with
screening calls/meetings structure consequences Fund selection documents for the investment guidelines
Proprietary global On-site fund Product life cycle Tax consequences Liquidity management selected funds Monitoring of
network of fund manager visits Investment guidelines for the 1–2 IC meetings held Monitoring the investment
managers, investors Real estate viewings Advisory Committee subscription/redempti per quarter (additional KYC/AML process performance
and placement Reference discussion Leverage on of shares meetings ad hoc if Side letter Strategic and tactical
agents with existing investors Reporting Analysis of the required) negotiation asset allocations
High selectivity and Peer group Corporate organizational Liquidity
cherry-picking comparisons governance structure management
Fund database and Investment strategy Liquidity Obligations to submit Management of capital
analysis of key Track record Fund charges/costs a tax declaration calls
figures for primary ESG factors Investment manager Duties of disclosure Foreign currency
and secondary Fee structure Regulations Analysis of alternative hedging
market transactions Assessment of Service provider structures Processing of
>900 meetings and valuations and future Conflicts of interest Tax ruling if corporate actions
calls with fund developments Valuations applicable Updating tax rulings
managers Organization and Business reports Client-specific
processes reporting
Source: Credit Suisse.
For illustrative purposes only, the table does not represent an exhaustive list.
Credit Suisse Asset Management (Switzerland) Ltd. The disclaimer mentioned at the end of this document also applies to this page. May 2020 24Multi-Manager Real Estate Global platform
Transaction structures
Primary market Late/final close Secondary market Club deals Seed investments Co-investments
investments investments investments
Investment in a target Invest in the final close Acquire fund units Invest in a fund with Supporting a manager Co-invest in a property
fund through standard of a closed-ended through the secondary two to five other limited in launching a new fund held by a target fund
subscription process target fund market from an existing partners by providing seed that is too large for
Features
investor capital single ownership
Typically minority Invest in the target fund Fund might be
holding in a target fund "at cost" while Extensive network and converted or opened to Fund managers are Fund manager keeps
equalizing/ timely execution are key other investors at a later willing to grant attractive control over the
compensating existing success factors stage terms to seed investors property to execute the
investors business plan
Exposure to established Benefiting from an Immediate deployment Concentrated Dictating fund’s terms Attractive co-investor
funds with large immediate uplift after of capital in fund that ownership allows better and conditions fees
diversified portfolio and the final close would not be investable control of the manager
Rationale
low property-specific or would have a long and provides stronger Attractive seed investor Exposure to attractive
risk Good visibility over the investment queue alignment of interest fee discount single-asset
target fund’s portfolio among the limited opportunities
Higher liquidity because Benefiting from a partners
of diversified investor potential discount to
base NAV
Source: Credit Suisse
Credit Suisse Asset Management (Switzerland) Ltd. The disclaimer mentioned at the end of this document also applies to this page. May 2020 25Disclaimer
Distributed by CREDIT SUISSE ASSET MANAGEMENT (Switzerland) Ltd. and CREDIT SUISSE AG
Source: Credit Suisse, otherwise specified.
Unless noted otherwise, all illustrations in this document were produced by Credit Suisse Group AG and/or its affiliates with the greatest of care and to the best of its knowledge and belief.
The information provided herein constitutes marketing material. It is not investment advice or otherwise based on a consideration of the personal circumstances of the addressee nor is it the result of objective
or independent research. The information provided herein is not legally binding and it does not constitute an offer or invitation to enter into any type of financial transaction. The information provided herein
was produced by Credit Suisse Group AG and/or its affiliates (hereafter "CS") with the greatest of care and to the best of its knowledge and belief. The information and views expressed herein are those of
CS at the time of writing and are subject to change at any time without notice. They are derived from sources believed to be reliable. CS provides no guarantee with regard to the content and completeness
of the information and where legally possible does not accept any liability for losses that might arise from making use of the information. If nothing is indicated to the contrary, all figures are unaudited. The
information provided herein is for the exclusive use of the recipient. Neither this information nor any copy thereof may be sent, taken into or distributed in the United States or to any U. S. person (within the
meaning of Regulation S under the US Securities Act of 1933, as amended). It may not be reproduced, neither in part nor in full, without the written permission of CS. The key risks of real estate
investments include limited liquidity in the real estate market, changing mortgage interest rates, subjective valuation of real estate, inherent risks with respect to the construction of buildings and environmental
risks (e.g., land contamination). The issuer and manager of CSA 2 products is the Credit Suisse Investment Foundation, Pillar 2, Zurich. The custodian bank is Credit Suisse AG, Zurich. The articles of
incorporation, the regulations and the investment guidelines as well as the latest annual reports and fact sheets can be obtained free of charge from the Credit Suisse Investment Foundation, Pillar 2. This
foundation is open only to a restricted group of tax-exempt pension funds domiciled in Switzerland (article 3 of the articles of incorporation).
Copyright © 2020 CREDIT SUISSE GROUP AG and/or its affiliates. All rights reserved.
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