Hunter Chase - Asset Management

Staying Informed on All Investments

Communication is vital to the success of any venture. Reporting through the preferred method of each individual Investor informs them of the progress of their project and the success of their Investment. Each Investor in a Hunter Chase sponsored program will have the information they need when they want it. Hunter Chase is committed to providing:

Project-level asset management reports at the pre-negotiated frequency, normally monthly or quarterly
Staff availability at any time for report review and to answer questions

Copies of all Site Visit Summary reports
Written reports of any status changes or updates
Fund-level reports that aggregate Project-level information for easy evaluation of fund performance
Tax estimates well in advance of tax deadlines

The Principals of Hunter Chase have decades of experience providing project and asset management services on behalf of sophisticated institutional investors. This proven performance track record, along with the significant investments Hunter Chase has made in its people and systems, provides a strong level of security to Hunter Chase’s investor base.

One of the hallmarks of the Hunter Chase equity program is uniformity of project-level administration across all investment programs and Investors. This uniform base allows Hunter Chase to tailor its upper-tier, or funds-level, reporting to fit investor needs and preferences.

Hunter Chase maintains an integrated system for both qualitative and quantitative project tracking that is intended to maximize project understanding and early detection of potential problems. We actively track on an ongoing basis each of the four critical components of each project:

Milestone achievement
Rental and/or sales revenue generation and marketing
Cost accounting
Physical progress

As mentioned, each of these components is monitored, and reports are routinely generated, from each of two perspectives:

Quantitative Tracking. Financial and other information obtained monthly in the course of monitoring activities is entered into a database program for tracking and reporting on projects, and then reduced to a uniform project-level set of reports, which can be aggregated as needed at the fund or project level to reflect the status of each investment.
Qualitative Tracking. HC’s senior asset management staff keeps active real-time contact with each of the projects assigned to them. Project personnel conference calls are conducted at least monthly, and site visits occur at least quarterly (unless the project’s Asset Quality Rating drops below a “C” classification, as discussed in the following section). These efforts result in routinely generated written “Status Change or Update” (“SCR”), “Asset Issue Plan” (“AIP”), “Change Request Package” (“CRP”) and Site Visit reports to the Investor.

Asset Quality Rating

Hunter Chase’s Asset Quality Rating (“AQR”) classification system provides a useful measure by which to qualitatively assess Project status. In addition to allowing easier communication of Project status generally, AQR grading allows comparison of Project status portfolio-wide (as opposed to Proforma comparison, which is a Project-specific measure). Further, AQR class changes trigger particular asset management activities particularly regarding qualitative reporting and oversight.

The AQR system is composed of two measures, each of which is comprised of several levels of measurement. Each of these two measurement systems is intended to assess the status of a different aspect of Project and Investment performance. One scheme reflects the perceived need for enhanced oversight of the project, and the other reflects the perceived level of risk of obtaining proforma returns of and on the Investment.

Operational Oversight. The three strata, or levels, by which Hunter Chase assesses the need for heightened operational oversight and attention are:

“A” No significant Project or Sponsor performance degradation. Successful project in all relevant regards.

“B” Significant issues have arisen that may adversely affect Project performance in a material way.

“C” Serious problems have developed with respect to the Project which appears likely to adversely affect Project performance if not resolved.

Investment Risk. The four strata by which Hunter Chase assesses ambient risk of achieving proforma returns of and on Investments are:

“1” It appears the Project (a) will achieve full proforma returns of the Investment, and also (b) will achieve full return on the Investment.

“2” It appears the Project (a) will achieve full return of the Investment, but (b) may fail to achieve proforma returns on the Investment.

“3” It appears the Project (a) may fail to achieve full return of the Investment, and also (b) may fail to achieve proforma returns on the Investment.

“4” It appears the Project (a) will fail to achieve full return of the Investment, and also (b) will fail to achieve any return on the Investment.

Although there can obviously be some level of correlation between the two measurement schemes, both are applied more-or-less independently to every Project in which Hunter Chase maintains an Investment. The result is an ongoing evaluation of both the operational and return aspects of each Project and Investment, with grades from each classification scheme assigned and evaluated on an ongoing basis.