Exit plan
How long the opportunity may run and whether the planned exit is through a buyback, property sale, investor transfer, or another documented route.
Trust through clarity
FracInvest Risk Rating Methodology
Our four labels make it easier to understand how an opportunity is put together. We look at the exit plan, the people involved, the project stage, how income may be earned, and the ownership structure. This gives investors a simple starting point for comparing opportunities.
Relative Risk Scale
Low RiskHigh Risk
CorePlanned exit terms
SelectRental income focus
PrimeEstablished developer
AlphaEarly-stage growth
Every opportunity is reviewed on its own because the property, documents, project stage, and exit plan can be different.
How we review an opportunity
Five simple points shape every label
We look at the opportunity as a whole. Each of these five points helps us decide which label explains it best.
People behind the opportunity
The experience, track record, financial capacity, and responsibilities of the developer, owner, tenant, or proposed buyer.
Project stage
Whether it involves land, a newly launched project, a completed property, or an operating property that already has a tenant.
Income plan
How rent or other distributions are expected to be generated, including occupancy, lease length, and rent increases.
Ownership structure
How the property is held, what rights investors receive, how money moves, and which agreements record these arrangements.
The FracInvest labels
Four easy-to-understand opportunity profiles
The labels help compare one FracInvest opportunity with another. They show what mainly supports each opportunity and how its income and exit are expected to work.
CoreStructured exit label
01
Relative range: LowerPlanned from entry to exit
Core opportunities begin with a clearly documented exit plan. This usually includes a stated investment period and a buyback agreement from the developer or property owner. Investors can see who is responsible for the proposed exit, the expected timeline, and the main conditions from the beginning.
What usually defines Core
- Defined investment tenure
- Documented developer or property-owner buyback
- Exit conditions stated at inception
- Clear ownership and payment structure
Details explained in the documents
- Who will complete the buyback
- How the agreement and payment terms work
- The expected timeline and important milestones
- How the proposed exit value is calculated
The opportunity documents set out the proposed exit date, value, responsible party, and applicable conditions.
PrimeEstablished developer
02
Relative range: ModerateBacked by an established developer
Prime opportunities are generally connected with established Tier-1 developers. Their completed projects, delivery history, customer confidence, and operating experience provide a useful record to review. The planned exit is usually linked to construction progress, market demand, a property sale, or another route described in the opportunity documents.
What usually defines Prime
- Established developer with a substantial portfolio
- Demonstrated delivery and customer history
- Recognised project and operating capabilities
- Opportunity terms supported by developer execution
How the exit is generally planned
- Market sale or another stated project route
- Timing linked to construction and market demand
- A suitable buyer for the property or interest
- Project and sale milestones shown in the documents
SelectRental Income Led asset
03
Relative range: Lower to moderateRental income from an operating property
Select opportunities usually involve pre-leased properties that are already generating rent, most often in commercial real estate. The tenant, lease period, occupancy, and scheduled rent increases help investors understand the expected income. Participation may be through registered co-ownership or an SPV, making it possible to hold a defined interest in the property or investment vehicle.
What usually defines Select
- Operating property with contracted rent
- Tenant quality and lease tenure are disclosed
- Occupancy and rent escalation support cash flow
- Registered co-ownership or SPV structure
What shapes the profile
- Tenant profile, lease terms, and occupancy
- Property costs deducted from rental income
- Whether the documents state an exit timeline
- Property demand and valuation at the time of sale
A signed lease can make rental cash flow easier to estimate. The documents also explain how a future property sale or investor transfer may work.
AlphaEarly-stage structure
04
Relative range: Moderate to higherEarly access with structured terms
Alpha opportunities are created at an early stage, sometimes around land acquisition or before every project approval is received. Early entry may offer stronger projected growth potential than a later-stage opportunity. The structure therefore gives special importance to approvals, project execution, the people involved, investor rights, and the planned exit timeline.
What usually defines Alpha
- Land or early project-stage participation
- Pricing before later development milestones
- Structured or secured contractual rights
- Higher projected return potential
What shapes the profile
- Status of title, approvals, and investor security
- Experience and responsibilities of everyone involved
- How investor funds and future payments are arranged
- Conditions and timing of the proposed exit
At a glance
Compare the purpose of each label
Swipe the table to view every column.
| Label | What mainly supports it | Usual property stage | How exit is generally planned | Relative range |
|---|---|---|---|---|
| Core | Defined tenure and contractual buyback terms | Opportunity-specific | Developer or property-owner buyback | Lower |
| Prime | Established developer and delivery history | Development or completed inventory | Market sale or stated project route | Moderate |
| Select | Lease income, tenant quality, and occupancy | Completed and operating | Asset sale or permitted investor transfer | Lower to moderate |
| Alpha | Early entry and transaction structure | Land or early project stage | Milestone-based sale, buyback, or structured route | Moderate to higher |
How to use the labels
A simple way to compare opportunities
FracInvest uses these internal labels to organise the information available when an opportunity is reviewed. They are a comparison tool rather than a credit rating or a personalised investment recommendation. If the project, documents, lease, participants, market, or exit terms change, we can review the label again.
Use the label as a starting point, then explore the opportunity disclosure, legal agreements, property and approval details, financial assumptions, fees, projected returns, and proposed exit terms. Independent legal, tax, and financial advisers can help relate these details to your own plans.
Apply the methodology
See how each current opportunity is labelled
Compare the label with the property, documents, projected returns, and proposed exit terms presented for that specific opportunity.