Frequently Asked Questions (FAQ)
Questions about Hanseatic
Q: What is Hanseatic?
A: Hanseatic Alternative Investments AIFP, also known as Hanseatic, is an investment firm that specializes in providing institutional-grade investment opportunities in the Baltic real estate sector. The company’s investment strategies involve identifying attractive investment opportunities and striving to generate returns that outperform the market. Hanseatic is headquartered in Riga, Latvia, and its team consists of experienced professionals with expertise in both real estate and finance. Hanseatic employs a bespoke due diligence process and has a successful track record of investing in residential real estate projects. Hanseatic maintains an extensive network that continually provides potential investment opportunities. Hanseatic is registered and regulated by the Bank of Latvia.
Q: Is Hanseatic regulated by the Bank of Latvia?
A: Yes, Hanseatic Alternative Investments AIFP is registered and regulated by the Bank of Latvia. The status of Hanseatic registration can be checked here https://uzraudziba.bank.lv/en/market/alternative-investment-fund-managers/registered-managers/hanseatic-alternative-investments-aifp/ .
Q: What is the investment process of Hanseatic?
A: Hanseatic follows a comprehensive investment process that involves several steps, including sourcing investment opportunities from partners, conducting due diligence on each opportunity, optimizing the financial and legal structuring, and presenting potential investments to the investment committee for funding through a mixture of investors and bank debt. The company also oversees the investments to ensure they are within budget and on time, and produces quarterly reports to provide full transparency to investors. Profits are distributed either throughout the investment or upon its conclusion after all investments are sold. Hanseatic has in-house expertise to step in and manage investments should issues arise.
Questions about investing in a residential real estate alternative investment fund
Q: What is a closed-end residential real estate alternative investment fund?
A: A closed-end residential real estate alternative investment fund is a type of investment vehicle that pools capital from multiple investors to invest in residential real estate assets, such as apartment buildings. It is “closed-end” because there is a set period of time for investors to join the fund, after which no new investors are allowed to participate. This is different from an open-end fund, where investors can buy shares at any time.
Q: How does a closed-end residential real estate alternative investment fund work?
A: The fund’s manager identifies residential real estate assets that they believe will generate a return for investors. Investors contribute capital to the fund, and in return, they receive shares that represent a portion of the ownership in the fund’s underlying assets. The fund’s manager then manages the assets on behalf of the investors, with the goal of generating income and appreciation.
Q: What are the benefits of investing in a closed-end residential real estate alternative investment fund?
A: Some potential benefits of investing in a closed-end residential real estate alternative investment fund include:
Diversification: By investing in a fund that owns multiple residential properties, investors can spread their risk across different real estate assets and potentially reduce the impact of any one property’s performance.
Professional management: The fund’s manager has expertise in residential real estate investing and can oversee the assets on behalf of investors, potentially leading to better returns.
Potential for income and appreciation: Residential real estate investments can generate rental income and appreciation over time, potentially leading to a return for investors.
Q: What are the risks of investing in a closed-end residential real estate alternative investment fund?
A: Like any investment, a closed-end residential real estate alternative investment fund comes with risks. Some potential risks include:
Illiquidity: Because the fund is closed-end, investors cannot easily sell their shares if they need to access cash. Instead, they must wait until the end of the fund’s investment period or find a buyer on a secondary market.
Market and economic conditions: Residential real estate values can fluctuate based on a variety of factors, including interest rates, supply and demand, and local economic conditions. These factors can impact the performance of the fund’s assets and ultimately affect investor returns.
Manager risk: The fund’s performance is dependent on the manager’s ability to identify and manage residential real estate assets effectively. If the manager makes poor investment decisions or fails to manage the assets properly, it could negatively impact the fund’s returns.
Q: Who is a good candidate for investing in a closed-end residential real estate alternative investment fund?
A: Closed-end residential real estate alternative investment funds are typically suitable for investors who are comfortable with illiquid investments and have a longer-term investment horizon. They may be appropriate for investors who are looking for exposure to residential real estate but do not want to own and manage properties directly. Additionally, investors who are seeking diversification within their portfolio may find a closed-end residential real estate alternative investment fund to be a good option. As with any investment, investors should carefully evaluate their goals, risk tolerance, and financial situation before investing.
Q: How is the Net Asset Value (NAV) of an alternative investment fund investment calculated?
A: The Net Asset Value (NAV) of an alternative investment fund reflects the value of an investor’s ownership stake in the fund’s residential real estate assets. The NAV is calculated by subtracting the fund’s liabilities from its assets and dividing the result by the total number of outstanding shares. The fund manager calculates NAV according to strict valuation guidelines and reports it to investors on a quarterly basis.
Q: What is the minimum investment requirement for Hanseatic investment fund?
A: The minimum investment amount for Hanseatic sustainable residential real estate alternative investment fund is 20,000 EUR.
Q: What is the duration of an investment in Hanseatic investment fund?
A: The investments in Hanseatic sustainable residential real estate alternative investment fund lasts a period of five years.
Q: Is it possible to withdraw my fund investment at any time?
A: No, you cannot withdraw your investment until the investment fund expiry. If you wish to exit an investment earlier, you can find a potential buyer for the fund units and agree on a suitable price.
Q: How frequently will I be updated on the investment fund?
A: You will receive quarterly updates on the activities of the investment fund. Additionally, ad-hoc updates will be provided for key events related to the Hanseatic sustainable residential real estate alternative investment fund.
Learn more about investing in Hanseatic funds