Evton Capital Partners
Evton Capital Partners is a Toronto-based real estate investor and manager specializing in Canadian commercial real estate. The firm, founded in 1995, uses a unique growth strategy in order to facilitate the Fund’s success. Evton’s investments fund from what is known as “love money” – capital given to a new entrepreneur by family and close friends.
According to an October 2010 Globe and Mail article, about $10 billion invested dollars stem from informal financing service per year. Approximately $8 billion of this is added by family and friends.
Through following this relationship-based investment model, Evton Capital has acquired over 32 properties, representing over $150 million in invested capital in Ontario and Alberta. This has a gross return rate of 31% on realized and unrealized investments.
Following the Family Model
In 1995, entrepreneurial business partners Michael Bunston and Willian (Bill) Evans established Evton Capital Partners. Bunston and Evans had first met as children attending Ridley College in St. Catherines. The partners later attended the University of Western Ontario, both choosing to study real estate. Although the two joined different firms after graduating, they soon reunited to create Evton Capital Partners in Toronto, Ontario. The founders established Evton’s model on the purchase of older yet serviceable B-Class real estate in Southern Ontario.
Bunston and Evans purchased their first commercial property in Brampton, Ontario. The purchase led to the involvement and financial investment of two of Bunston and Evan’s close friends. This initial investment snowballed; soon, many of the founders’ family and friends wanted to be involved in future purchases. Positive results led to further referrals, and Evton quickly grew to a multi-million dollar company.
In March 2005, Evton Capital created a fund to facilitate future growth. The Evton Real Estate Fund LP provides institutional or high net-worth investors with superior returns, long-term growth of capital, and quarterly tax-efficient distributions. Family and friends were given key opportunities to invest.
Evton Capital’s management transitions follow this same close-knit model. In November 2011, Evton announced real estate investment professional D’Arcy McGee would be joining the firm as President. McGee, a Queen’s University graduate, previously worked as Vice President, Global Principal Investment of Oxford Properties.
In November 2012, Roy Budgell joined Evton as Director of Operations. Budgell has over 20 years’ experience managing industrial, commercial, and retail properties throughout Canada.
“Roy’s depth of experience will greatly contribute to the ongoing success of the Evton Real Estate Fund,” McGee explains in a December 2012 press release, “His operational expertise will be invaluable as we continue to build the Evton Capital Partners management platform.”
Today, Evton Capital operates two streams of business: asset management and property management. Founders Bill Evans and Michael Bunston remain highly active in the business, each holding the title of Partner.
Evton’s asset management services, facilitated through the Evton Real Estate Fund LP, offers direct access to commercial real estate for institutional and high net-worth investors. Evton takes full responsibility of each investment, using the management team’s expertise to add value to the Fund.
Evton’s asset management services include: sourcing and acquisition, research and analysis, financing, disposition, and reporting. Each investment opportunity Evton considers must adhere to the firm’s guiding principles. First, the pricing must be conservative and represent the asset’s true intrinsic value. There must also be clear opportunities for added value. The asset must produce a strong and consistent cash flow.
Evton engages a prudent financing approach in each investment opportunity, ensuring a conservative amount of debt leverage on a non-resource basis. The firm handles each asset with responsive decision-making tactics, and adheres to a defined exit strategy and options for profitable development or divestment.
As of April 23, 2013, the 8-year compound annual return since the Fund’s inception is 13.7%. Properties are at varying stages of their value-add lifecycle. Evton remains optimistic that operating cash flow will grow significantly as a result of the successful execution of the firm’s value-add initiatives.
Evton Capital Partners believes property management demands a personal touch. The management team builds strong relationships with all clients and ensures that each receive personal attention from the firm’s managing partners.
The firm offices a full range of cost-effective services, including:
Repositioning the real estate assets to increase their value, and increasing rental income to optimal levels
Maintaining a close control of operating costs
Effectively leasing space in order to raise occupancy rates and therefore increase cash flow
Responding quickly to tenants as well as to opportunities
Providing exceptional financial reporting
Evton practices preventative maintenance and attempt to anticipate potential issues that may arise. Due to the firm’s depth of experience within the real estate management field, it can determine a properties optimal revenue opportunities and assist in reaching each client’s property’s premium value.