In this episode, we continued our insightful conversation with Aleksey Chernobelskiy, an expert advising both Limited Partners (LPs) and General Partners (GPs) on real estate investments. Aleksey, with an impressive background managing a $10 billion portfolio at Store Capital and offering invaluable advice, shared insights on the often daunting topic of capital calls.
Capital calls, a potential source of stress for investors, are becoming more common in the current economic climate. Aleksey clarified the concept into two types: expected and unexpected capital calls. He emphasized the importance of understanding the difference and being prepared for both scenarios.
For LPs facing a capital call, Aleksey provided a step-by-step approach to assess the situation. He stressed considering whether you have the liquid funds to invest and understanding the legal implications of not participating. It’s crucial to know the status of your initial investment and evaluate whether reinvesting through a capital call is the best use of your funds compared to other opportunities.
A key takeaway from our discussion was the need for LPs to approach capital calls as a new investment decision, devoid of emotions. Aleksey urged investors to perform due diligence and ask the right questions to make informed decisions. He also highlighted verifying whether the current capital call will be the last one needed for the project.
For those wanting to explore the intricacies of capital calls and other investment considerations, Aleksey recommended checking out his articles on his Substack, where he regularly shares his expertise with the investment community.
Whether you’re an LP or a GP, being well-informed and prepared can make all the difference when navigating the complexities of real estate syndication. Stay tuned for more insights on the Real Estate Syndication Show, and remember to like and subscribe to stay updated with the latest industry trends.
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About Aleksey Chernobelskiy:
Aleksey Chernobelskiy advises limited partners (LPs) on investment strategies, with a dedicated 1.5k investor following on his Substack. He also assists general partners (GPs) in matters related to LPs, including capital calls and investment deck feedback. Previously, he managed STORE Capital’s $10B commercial real estate portfolio and led the underwriting team. Aleksey’s academic background includes a quadruple major in Finance, Mathematics, Economics, and Accounting from the University of Arizona.
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