Allocate clients into single-asset real estate securities with no lockups while retaining your AUM and advisory fees.
Invest client funds in individual commercial real estate properties to provide them a tax-advantaged yield-based investment.
Retain AUM and advisory fees because LEX securities can be held at your current custodian.
LEX shares can be listed for sale on the secondary market at any time if a client liquidity need arises. Liquidity is not guaranteed.
Real Estate generates distributions when tenants pay rent. Distributions are not guaranteed.
Diversification beyond stocks, bonds, mutual funds, and ETFs.
Direct RE ownership affords clients tax advantages other vehicles simply do not. Additional details here.
Keep your clients’ assets at your existing custodian. All LEX property offerings are DTC-eligible securities that are assigned a ticker symbol and CUSIP number upon their IPO. LEX securities can be held by your existing custodian. LEX securities are already held at Schwab, Merrill Lynch, Fidelity and others.
See the tenants, loan information, and other details of each building. Know exactly what your clients are investing in, with a far greater level of asset-level information than any other tradable real estate investment.
LEX securities are structured as Publicly Traded Partnership (PTP) Interests. This allows many of the tax benefits of direct commercial real estate ownership to pass through to investors. Investors will receive a K-1 at the end of the year, not a 1099.
Offer clients a means to earn passive income via a yield-focused equity investment. LEX securities are expected to generate quarterly distributions quarterly as the tenants of the buildings pay rent. Distributions are not guaranteed, but sponsors are required to pay distributions to shareholders pro-rata if they take distributions themselves.
LEX securities trade on the LEX ATS and OTC Markets’ ATS, a secondary market exists if an investment needs to be exited. Liquidity is not guaranteed. The equity shares held by your clients will be trading and consistently priced on the secondary market. If an asset sells, shareholders receive their share of the proceeds as a cash distribution. Returns are not guaranteed.
In all LEX offerings, the original sponsor of the building retains substantial equity in the building, so their interests are aligned with yours. While the sponsor of the building retains control to operate the building without interference as they know the asset best, investors are offered various shareholder protections (e.g. against inflated management fees or an insider sale).