How We Invest

Somera Capital Management employs three main investment platforms.

  1. Joint-Venture Equity:
    Our core business, we seek qualified and trusted operating partners with specific asset class expertise and deep market knowledge. Our goal is to develop long-term relationships with our operating partners in the hopes of executing multiple transactions over time.
  2. Preferred Equity:
    Primarily oriented for development projects, we provide a unique component of the capital stack that can provide an owner/operator the ability to execute a business plan and secure complete ownership of an asset after delivering a fixed total return on our invested capital.
  3. Direct Equity:
    Primarily driven by asset type and geographic location, we have the experience and ability to acquire an asset without an operating partner if that is the best execution to maximize value.

Uncomplicated and Shared Objectives

From inception, Somera has identified investments with a simple core mandate – if an opportunity isn’t appealing to our capital, we won’t pursue it.  The amount of our own capital invested in any transaction is generally well in excess of any potential profit participation and therefore our preservation of capital orientation provides ultimate alignment.  This alignment with our investor partners has created long standing relationships that are now transcending generations and provide for investment periods that are defined by common profit objectives, not return hurdles or structured return metrics commonly found in institutional or purely promotional platforms.

Through experience and market intelligence, investment prospects are vetted methodically, leverage employed conservatively, and business plans built individually to create stand-alone entities with the greatest possible foundation of success.   The investment hold period involves active asset management designed to enhance returns and identify necessary changes as market conditions continually evolve.  Our team of professionals are dedicated and have a vested interest in each investment, as well.

With a significant portfolio, Somera has positioned itself operationally to endure the cyclical economic conditions that will always be present in the industry.  Whether in an active transaction cycle or an operational cycle, Somera’s team and depth have weathered it all.

Aloft Hotel, Cupertino, CA

Aloft Hotel, Cupertino, CA