THREESTONES CAPITAL MANAGEMENT S.A.

Threestones Capital is a fast growing independent investment management group headquartered in Luxembourg. The company manages private equity real estate regulated investment vehicles under the supervision of the Luxembourg financial authorities (CSSF) in compliance with European financial regulations.
Threestones Capital Management SA is an AIFM (Alternative Investment Fund Manager) in accordance with the AIFM Directive

Focus on niche asset class

In evaluating private equity investments, Threestones Capital looks for asset classes with stable and predictable cash flows,...

A two-fold investment strategy

In devising the investment strategy and select investment markets, the company privileges a top-down approach recognising that business...

Hands-on direct management

Threestones believes in “hands-on” direct investment management and detailed control of operations. and applies a vertically integrated...

Making Sustainability Integral

Threestones Capital makes significant progress in making ESG an integral part of the business, from both a top-down and a bottom-up perspective...

Fund Structure SIF-SICAV
Luxembourg Closed-end SIF-SICAV

Fund Manager (AIFM)
Threestones Capital Management SA

Currency
EUR

Fund Size
EUR 450 million (equity)

Leverage
Max. 50% LTV

Fund Term
8 years (+1 year extension)

Target Net IRR
10-12% (net of all costs , fees, promote, and taxes)

Target Distribution
4% p.a., paid quarterly

Minimum Subscription
Closed to subscription

Manager
TSC One SARL

Asset Class
Nursing Homes

Investment Style
Core+

Geography
Germany, Italy, Spain

Launch date
2016

Fund Structure SIF-SICAV
Luxembourg Closed-end SIF-SICAV

Fund Manager (AIFM)
Threestones Capital Management SA

Currency
EUR

Fund Size
EUR 500 million (equity)

Leverage
Max. 50% LTV

Fund Term
6 years (+1+1 year extension)

Target Net IRR
10-12% (net of all costs , fees, promote, and taxes)

Target Distribution
4% p.a., paid quarterly

Minimum Subscription
EUR 1 million

Manager
TSC One SARL

Asset Class
Nursing Homes

Investment Style
Core+

Geography
Germany, Italy, Spain

Launch date
2021

Fund StructureSIF-SICAV
Luxembourg Closed-end SIF-SICAV

Fund Manager (AIFM)
Threestones Capital Management SA

Currency
EUR

Fund Size
EUR 160 – (Target: EUR 100m - Over-subscribed)

Leverage
50% LTV

Fund Term
5 years + 2x2 year extension option

Target Net IRR
12 ‐ 15% (net of costs and fees)

Target Distribution
5% p.a.

Minimum Subscription
closed to subscription

Manager
TSC One SARL

Asset Class
Nursing Homes

Investment Style
Core+

Geography
Germany

Launch date
2014

Fund Structure SIF-SICAV
Luxembourg Open‐ended SIF-SICAV

Fund Manager (AIFM)
Threestones Capital Management SA

Currency
EUR

Fund Size
EUR 100 million

Leverage
50% LTV

Fund Term
Open-ended with 3-years lock-up period

Target Net IRR
7%-8% Net p.a.

Target Distribution
4% Net p.a. paid quarterly

Minimum Subscription
125.000 EUR

Manager
TSC One SARL

Asset Class
Residential

Investment Style
Value added

Geography
Germany

Launch date
2014

Fund StructureSIF-SICAV
Luxembourg Closed-end SIF-SICAV

Fund Manager (AIFM)
Threestones Capital Management SA

Currency
EUR

Fund Size
EUR 60 million

Leverage
55% LTV

Fund Term
Exited 2016

Target Net IRR
Approx. 13%

Target Distribution
5% p.a.

Minimum Subscription
Closed to subscription

Manager
TSC One SARL

Asset Class
Nursing Homes

Investment Style
Core+

Geography
Germany

Launch date
2010

THREESTONES CAPITAL MANAGEMENT S.A.

Threestones Capital is a fast growing independent investment management group headquartered in Luxembourg. The company manages private equity real estate regulated investment vehicles under de supervision of the Luxembourg financial authorities (CSSF) in compliance with European financial regulations.

Threestones Capital Management SA is an AIFM (Alternative Investment Fund Manager) in accordance with the AIFM Directive
FOCUS ON NICHE ASSET CLASS
teaser_1
In evaluating private equity investments, Threestones Capital looks for asset classes with stable and predictable cash flows,...
READ MORE
A TWO-FOLD INVESTMENT STRATEGY
teaser_2
In devising the investment strategy and select invest-
ment markets, the company privileges a top-down approach recognising that business...
READ MORE
HANDS-ON DIRECT MANAGEMENT
teaser_3
Threestones believes in “hands-on” direct investment management and detailed control of operations. and applies a vertically integrated...
READ MORE

THREESTONES CAPITAL MANAGEMENT S.A.

Threestones Capital is a fast growing independent investment management group headquartered in Luxembourg. The company manages private equity real estate regulated investment vehicles under de supervision of the Luxembourg financial authorities (CSSF) in compliance with European financial regulations.

THREESTONES CAPITAL MANAGEMENT S.A.

Threestones Capital is a fast growing independent investment management group headquartered in Luxembourg. The company manages private equity real estate regulated investment vehicles under de supervision of the Luxembourg financial authorities (CSSF) in compliance with European financial regulations.

INVESTMENT STRATEGY AND MANAGEMENT APPROACH
FOCUS ON “NICHE” SECTORS AND ASSET CLASSES
In evaluating private equity investments, Threestones Capital looks for asset classes with stable and predictable cash flows, positive supply/demand fundamentals, a favorable demographic profile, and assets with potential to generate capital gains over 5 to 7 years. Threestones Capital aims to identify investments in “niche” growing asset classes or industries which are reasonably priced and to build portfolios / execute “build-up” strategies aimed to achieve critical mass or significant market position to make the investment attractive to international strategic players, institutions or public markets.
A TWO-FOLD INVESTMENT STRATEGY
In devising the investment strategy and select investment markets, the company privileges a top-down approach recognising that business cycles are influenced by major global and local economic indicators. As far as the execution of the investment strategy is concerned, Threestones believes that local market knowledge and execution strength (deal sourcing, deal negotiations and operation management) are critical factors to successful investments.
HANDS-ON DIRECT MANAGEMENT
Threestones believes in “hands-on” direct investment management and detailed control of operations. and applies a vertically integrated operations management approach. Threestones Capital is managed by its 3 founding partners who are engaged full-time in the business and are aligned with investor’s interests.
The Fund’s strategy was to selectively acquire nursing home properties leased with LT contracts to a number of leading healthcare operators and to sell them as a “portfolio” to an institutional investor within a 5-7 years period. The Fund aggregated a diversified portfolio of 14 quality nursing homes leased to 7 operators across Germany which was successfully sold to a European institutional investor for EUR 138 million in 2016, fully realizing the initially projected performance. The Fund achieved an overall return of 162% and in excess of 13% Net IRR.
TSC GERMAN PROPERTY INCOME FUND
Investment Objective
Acquire yield generating senior housing properties in Germany, rented out under long term contracts to top tier nursing home operators.
Investment Strategy
A unique investment proposition combining current cash flow and capital appreciation in a growing and uncorrelated sector.
Build up a critical mass portfolio of quality senior housing assets sufficiently large to attract institutional investors willing to pay a premium to access sizeable portfolios in this emerging and still fragmented asset class.
The fund has been launched in 2010, has concluded the investment phase and today manages a portfolio of 14 properties.
CURRENT PORTFOLIO
Nursing Homes Market: anticyclical, growing and recession-proof
Sector mainly driven by natural demographic demand and resilient to the economy and markets
Regulated and government supported by the leading European country
German senior housing market expanded twice faster than GDP in the last 10 years and it is expected to grow at 5% p.a. until 2050
Long term leases (25 years) indexed to CPI (inflation protection)
Attractive acquisition yields (7-8%p.a.) compared to other developed markets (150-200 bps)
Price per sqm (EUR 1,500 per sqm) lower than replacement cost
GEFCARE REAL ESTATE FUND
Investment Objective
Acquire yield generating senior housing properties in Germany, rented out under long term contracts to top tier nursing home operators.
Expected portfolio: 15-20 properties with 1,600-2,000 beds.
Investment Strategy
A unique investment proposition combining current cash flow and capital appreciation in a growing and uncorrelated sector.
Build up a critical mass portfolio of quality senior housing assets sufficiently large to attract institutional investors willing to pay a premium to access sizeable portfolios in this emerging and still fragmented asset class.
CURRENT PORTFOLIO
Nursing Homes Market: anticyclical, growing and recession-proof
Sector mainly driven by natural demographic demand and resilient to the economy and markets
Regulated and government supported by the leading European country
German senior housing market expanded twice faster than GDP in the last 10 years and it is expected to grow at 5% p.a. until 2050
Long term leases (25 years) indexed to CPI (inflation protection)
Attractive acquisition yields (7-8%p.a.) compared to other developed markets (150-200 bps)
Price per sqm (EUR 1,500 per sqm) lower than replacement cost
TSC EUROCARE REAL ESTATE
Investment Objective
Acquire yield generating senior housing properties in Europe, rented out under long term contracts to top tier nursing home operators.
Investment Strategy
A unique investment proposition combining recurring cash flow and capital appreciation in a growing and uncorrelated sector. 2/3 of expected performance generated by recurring cash flow.
Build up a critical mass portfolio of quality senior housing assets sufficiently large to attract institutional investors willing to pay a premium to access sizeable portfolios in this emerging and still fragmented asset class.
The fund has been launched in July 2016 and is accepting subscriptions form investors.
Nursing Homes Market: anticyclical, growing and recession-proof
Sector mainly driven by natural demographic demand and resilient to the economy and markets
Regulated and subsidised by the governments of European countries
Long term leases (>15 years) indexed to CPI (inflation protection)
Attractive acquisition yields (6-8% p.a.) compared to other developed markets
Price per sqm (EUR 1,500 per sqm) lower than replacement costTSC FUND BERLIN RESIDENTIAL
Investment Objective
The Fund invests in yield producing quality residential properties in the Berlin city centre and will seek to achieve capital appreciation over the medium term through active management and rents growth, while collecting current rents.
Investment Strategy
yield producing properties with (if possible) some vacancy (20-30%)
Rent below current market level
Price/sqm: EUR 1,500 (average)
The fund invests in stabilized income generating properties in Berlin’s prime central and emerging locations offering upside potential with the following main investment criteria:
This strategy offers a unique investment proposition combining current cash flow with capital gain potential
CURRENT PORTFOLIO
Key Drivers of Performance
Renting of vacant space at current market level: old rent agreements 50% below current market
Rent increase through property improvements: common spaces, energy savings programs, façade, lift, etc.
Increase of rentable area: top floor (roof) permitted by law,…
Quarterly Adjusted NAV per share (*)