Alignment of Interest–The Third Commandment
Alignment of Interest
Alignment of interest is the cornerstone of our work at Clarity.
Our approach is refreshingly contrarian as opposed to the investment sales and Wall Street business models you may be used to.
Alignment of interests means a few things to us but most importantly; that we as sponsors and capital allocators don’t do well until our investors do well.
We do this in three ways:
- Skin in the Game.
At Clarity we have our own investment capital in the game as well. We put-our-money-where-our-mouth-is, we walk-the-talk and all of the other clichés. The fact of the matter is that we are in the investments with you and our interests take a back seat to our investors’ and their families.
Finding a firm that does this is rare as most investment firms derive their income mainly from fees and loads and this creates a baked-in conflict of interest.
- Fees & Loads.
Right off of the bat fees and loads that take from your investment dollar’s strength. While there may be “catch up” provisions the firepower of you family’s investment is immediately diminished with high fees.
Second, this is how most firms make their income. Not from making the investment a huge success and then sharing in the much bigger pie, as we do at Clarity. Rather, they make their income from raising (aggregating) capital and then sitting on it collecting fees. This is one of the main reasons that hedge funds are closing so quickly—lack of performance and collecting fees.
The only fees Clarity collects is to cover our very low overhead and the other small incurred expenses.
- Good Stewards.
Stewardship starts with service. This service is to our investors, our clients and those that we allocate to. We use our more than a dozen years of real estate achievement to ensure that everyone that we work with has the highest possibility of success. The more selfless that we are in this pursuit of service the more that everyone wins. Putting others in front of our own interests has proven time and again to be key to our accomplishments.
(Be on the lookout for a post specifically about stewardship soon)
Ultimately, we don’t do well until our investors do well.
The way we make our firm successful is to make our clients and investors successful first. There really is no better feeling than going full cycle on an investment and sending the closing wire to the investors only for them to stop us and say “hang onto those funds, we want to do another deal with Clarity”.
So, give us a call today and let’s see how our families can do well together!