Will Buchanan: Navigating The Investment Landscape

There are several companies that go by the name Buchanan Investments or a similar name. For instance, Buchanan Capital Partners is a no-fee, performance-based commercial real estate investment firm. Buchanan Street Partners is another company that provides a foundation for quality real estate debt and equity investments. There is also Buchanan Capital, Inc., an independent investment advisory firm, and Buchanan Investments, a company that specializes in private equity and venture capital investments in growth companies.

Private equity and venture capital

Private equity is capital invested in a company or entity that is not publicly listed or traded. It is a source of investment capital from high-net-worth individuals and firms. These investors buy shares of private companies or gain control of public companies with the intention of taking them private and delisting them from public stock exchanges. Large institutional investors, including pension funds and large private equity firms funded by accredited investors, dominate the private equity world. Private equity firms usually seek to buy mature companies that are already established but may be deteriorating or failing to make adequate profits due to inefficiency. These firms typically invest $100 million or more in a single company and buy 100% ownership, giving them total control of the company. They use both cash and debt in their investments and often have an exit strategy involving selling the improved business for a profit after several years.

On the other hand, venture capital is funding given to startups or young businesses with long-term growth potential. Venture capital firms invest in companies with the potential to generate high growth rates and above-average returns, often through innovation or by creating a new industry niche. The funding for this type of financing typically comes from wealthy investors, investment banks, and specialized VC funds. Venture capital firms usually invest $10 million or less in each company, buying 50% or less of the equity, as they prefer to spread their risk across multiple companies. Most of the companies they invest in are startups with unpredictable chances of failure or success. Venture capital firms deal only with equity and often provide expertise in addition to financial investment.

Buchanan Investments, a firm based in San Francisco, California, specializes in private equity and venture capital investments in growth companies. They have been involved in various funding rounds, including Series B, Series D, and Series A funding, indicating their participation in different stages of company growth.

Commercial real estate

Buchanan Street Partners, based in Newport Beach, California, is a real estate investment management firm that focuses on value-investing in commercial, multifamily, and self-storage direct ownership, as well as debt investments. They have experience in all aspects of the investment process, from acquisitions to dispositions, and have invested through multiple real estate cycles. Buchanan Street Partners targets middle-market assets valued between $15 million and $100 million, where ownership is fragmented and market inefficiencies are believed to exist.

Buchanan Realty Group, a boutique commercial real estate firm, also operates in this space. They specialise in commercial leasing, representing owners and tenants seeking growth in their investments or businesses. The group has successfully negotiated deals for clients in various sectors, including retail, hospitality, medical, industrial, and multi-family.

Buchanan-affiliated firms have been involved in numerous significant commercial real estate transactions. For example, Buchanan Capital Partners acquired a 136,000 square foot multi-tenant office tower in Downtown Austin, Texas. Buchanan Street Partners has also made notable investments, including a focus on office, industrial, retail, and multi-family properties.

The companies have a rigorous investment process, a collaborative decision-making approach, and a commitment to delivering quality and performance. They seek to add value in all opportunities and are dedicated to their investors, the industry, and the community at large.

Risk-adjusted returns

There are several methods for evaluating risk-adjusted returns, including the Sharpe ratio, Treynor ratio, alpha, beta, and standard deviation. Each of these methods yields a slightly different result, and they can be used to evaluate individual stocks, investment funds, and entire portfolios.

The Sharpe ratio, for example, measures the profit of an investment that exceeds the risk-free rate per unit of standard deviation. It is calculated by taking the return of the investment, subtracting the risk-free rate, and dividing this result by the investment's standard deviation. A higher Sharpe ratio is generally preferable as it indicates a better risk-adjusted return.

The Treynor ratio is calculated in a similar way but uses the investment's beta in the denominator.

Alpha is a measure of an investment's performance against a benchmark index, such as the Sensex or Nifty. It provides insight into the skill of a fund manager by showing whether the fund is outperforming the benchmark.

Beta is a measure of volatility, indicating how much risk is involved in an investment compared to the broader market. A beta value higher than 1 indicates more volatility in the investment compared to the market.

Standard deviation measures how much an asset's returns vary over an observed period compared to its average returns, providing insight into the steadiness of an asset's returns.

Buchanan Capital Partners (BCP) is a performance-based commercial real estate investment firm that focuses on providing consistent, superior risk-adjusted returns to its investors. BCP's investment philosophy is centred around minimising losses and prioritising downside risk mitigation and principal protection. The firm has a track record of over 19 years of consistent returns, with a 65.8% project-level IRR and a weighted average equity multiple of 2.9x over an average 2.7-year hold period.

Wealth management

Chase Buchanan Wealth Management

Chase Buchanan is a highly regulated wealth management company specialising in providing global financial solutions for individuals with an international lifestyle, particularly expatriates. They are global financial advisors, supporting expatriates worldwide from their regulated European headquarters.

Buchanan Capital, Inc.

Buchanan Capital, Inc. is a registered independent investment advisory firm that offers financial planning and wealth management services. They work with clients to manage their finances for the future through legacy and estate planning, trusts, educational accounts, and multigenerational investment planning. They also assist with growing retirement funds such as 401ks, IRAs, and pensions.

Buchanan Capital Partners

Buchanan Capital Partners is a no-fee, performance-based commercial real estate investment firm. They have a track record of providing consistent, superior risk-adjusted returns to their investors. Their investment philosophy focuses on minimising losses and prioritising downside risk mitigation and principal protection.

Buchanan Street Partners

Buchanan Street Partners provides real estate debt and equity investment services. Their investment strategy involves investing in a broad range of privately negotiated debt and equity investments, seeking optimal risk-adjusted returns throughout the capital structure. They primarily invest in office, industrial, retail, multifamily, and self-storage properties in the Western US, with a focus on assets valued between $15 million and $100 million.

Investment strategy

Buchanan Capital Partners is a no-fee, performance-based commercial real estate investment firm. The company has a track record of providing consistent, superior risk-adjusted returns to its investors. Buchanan's investment philosophy is centred around minimising losses and prioritising downside risk mitigation and principal protection. The company looks for assets trading at a discount, often off-market, and exercises patience, discipline, and conviction in its investment approach.

Buchanan Street Partners has a broad investment strategy, investing in a wide range of privately negotiated debt and equity investments. The company seeks optimal risk-adjusted returns throughout the capital structure, including first or participating mortgages, mezzanine debt, and preferred equity. Buchanan Street Partners focuses on assets valued between $15MM to $100MM, targeting property ownership and market inefficiencies.

The company has an experienced group of professionals with extensive networks and acquisition/distribution channels, including real estate owners, lenders, and financial intermediaries. Buchanan's asset management includes value-add strategies, business plan implementation, and active supervision of leasing and property management teams.

Buchanan Capital, Inc. is an independent investment advisory firm offering a customised approach to financial planning and wealth management. The company combines conservative investment strategies with market research tools, working with clients on legacy and estate planning, trusts, educational accounts, and multigenerational investment planning.

Frequently asked questions