Rock Creek’s Investment & Management Process
Rock Creek employs a comprehensive investment due diligence process and our investment committee meets weekly to share market intelligence and discuss its deal pipeline. Everything from potential new investments, specific negotiating points, due diligence concerns on active investments under consideration and, ultimately, disposition strategies are covered. Potential investments are prioritized according to diversification requirements and our analysis of the relative value of each prospective acquisition. The most promising investments are assigned to one of our Principals with related expertise who is responsible for structuring and negotiating the transaction. When the general terms of a proposed investment are known, including price, preliminary cash flows and comparable sales data, the investment committee (comprised of our three General Partners) reviews the deal to approve moving forward with the transaction, subject to completion of final due diligence.
Rock Creek’s due diligence process generally includes the following:
- Thorough Investment Review. All potential acquisitions are thoroughly reviewed to ensure that the acquisition: (a) conforms to the approved strategy for the region; (b) is expected to meet the required return objectives; and, (c) will do so with an acceptable level of risk.
- Inventory and Appraisals. If deemed appropriate or necessary, qualified independent consultants conduct appraisals, timber inventories and other due diligence investigations.
- Title, Survey and Environmental Reviews. Surveys are obtained and a title search is conducted on all acquisitions. If appropriate, Phase I and Phase II environmental site assessments are undertaken.
- Physical Site Visits. No property is acquired without a physical site visit by one or more of Rock Creek’s principals. Larger transactions typically require multi-day visits by a team of two or more.
- Portfolio Assessment. Finally, Rock Creek’s team evaluates the property’s “fit” relative to the investment risk/return profile of the entire portfolio of properties.
Multiple exit strategies for every asset are established at the time of acquisition and are crafted to maximize the return to the Partnership. To ensure that our investment objectives are met, we perform a financial analysis of each proposed activity (capital investment, timbering, etc.) considered for each property in the portfolio. Each approved activity is tracked for both income and expenses during implementation to ensure compliance with the management plan.