BENA Capital was recently invited to a closed-door Executive Roundtable in San Francisco, California. We were asked to share our industry insights and participate in a hosted Q&A session. We have permission to publish an abridged transcript of that conversation - here's an exclusive insider look at the interview with Kimberly Yeh, Managing Director of Acquisitions.
Host: BENA Capital has become one of the leaders in the private equity real estate space to champion debt-free investing. We have Kimberly Yeh, Managing Director of Acquisitions joining us today. Welcome.
Yeh: Thank you; good morning.
Host: To start us off, tell us - Why the "no debt" motto? Why is it important to you and how does it benefit investors?
Yeh: Good question. In the late 2000s, we saw the effects of debt obligation in the "Great Recession," spurred by the housing crisis. Everyday you would read about how the collapse of the housing market lead to millions of hard-working people losing their homes, how it wiped out trillions in household wealth. We wanted to change the landscape. To help people take back control so that this couldn't happen to them.
Host: And that's how the idea for BENA Capital was born.
Yeh: Yes; we built a vehicle for people to invest without the worry that another financial crisis would put them at risk of going under because of debt default. And as an added bonus, risk is inherently lower because there are no debt payments hindering cash flow and zero interest rate sensitivity.
Host: What else makes BENA Capital unique? How do you differentiate yourself from competitors?
Yeh: Aside from being debt-free, our company has a few core tenets we live by. At the very top of that list is that our investors come first. Every decision we make hinges on whether that decision will protect our investors’ best interests. Whether it will protect and grow our investors' capital. Whether we're making it as easy as possible for our investors to invest. Investors are our number one priority - we have an extremely experienced, extremely agile team. We listen to our investors' feedback and we adapt to their needs.
And you asked what differentiates us. In addition to being debt-free and putting investors first, our funds have no hidden fees. The returns we are targeting are 100% transparent. You will see other funds advertise high returns but those don't take into account all the miscellaneous transaction-based fees hidden in the offering material fine print, for acquisitions or committed capital for example. We don't have any of that. It's important to us that we align our interests with our investors' interests.
Host: BENA's new fund is launching in October. What should we know about it?
Yeh: Yes, the Mosaic Fund. On the heels of our successful value-add offering earlier this year, investors asked for a stable income fund - they wanted passive, consistently cash flowing opportunities and portfolio diversification across geographies and markets. The Mosaic Fund gives them all of that.
And investors get paid first. The cash flow you see projected with the Mosaic Fund is what you should expect every quarter when you get your dividend checks in the mail.
Host: That's a really interesting point --about lining up target returns apples-to-apples. Something we don't often think about, but should. So, for those of us interested in investing, what are our next steps?
Yeh: We're very accessible. You can email, call us, or drop us a quick note on our website - www.bena-capital.com. Pre-registration for the Mosaic Fund is available through 9/30 and the fund officially launches 10/1. Reach out to us; we'd love to hear from you and to discuss your investment goals.
Host: As a female executive in an often male-dominated field, what advice would you give to the next generation of female leaders?
Yeh: Don't underestimate what you can do when you put your mind and heart into something. Be confident enough to share what you know with others and humble enough to ask questions when you don't know the answers. You don't become a leader and innovator in your field of expertise by standing on the sidelines. Dive in -- never stop learning; knowledge is power that no one can take away.
Host: That's great advice. Thank you for your time and for joining us today.
Yeh: My pleasure.
About BENA Capital
BENA Capital manages real estate investment funds, with a central focus on the acquisition and management of residential multifamily assets in growing markets. BENA Capital's funds provide investors with ease of entry, reliable quarterly cash flow, and portfolio diversification. Our proven strategies emphasize sound investing in carefully researched, quality properties that have steady, long-term capital appreciation potential.
BENA Capital Mosaic Fund: Mosaic Fund
BENA Capital Investor Overview PDF: BENA Capital Overview