Investment
From conceptualization to creation and early-stage investments, our firm focuses on investments in the hospitality, petroleum, and real estate.
PHILOSOPHY
K2 Group strategically acquires assets with strong operating histories and income across market cycles. As a team, we have strong risk management values that stem from being principal investors ourselves in every transaction.
Extracting the highest value from real estate requires a disciplined team that exhibits prudent management, the ability to be nimble and react to changes in both local and macro conditions, and to provide creative solutions to complex challenges. As a fully integrated real estate investment, management and development company dedicated to our properties and the interests of our investors, we have the resources and are fully aligned to provide the highest standards in the industry and to ensure that we realize the maximum value from each property.
STRATEGY
Capitalize on discounted valuations relative to intrinsic
Historical precedent suggests that a clear path to recovery exists, as demonstrated by industry rebounds from recent black-swan events. With expected discounts being in value compared to pre-pandemic levels, our distressed acquisition strategy focuses on the unique buying opportunity created by the current high interest rates: acquiring assets at attractive discounted prices which under more normal circumstances may not come to market.
Focused-approach on the investment space + Value Creation
As a continued driver of growth under more conventional market conditions, our group’s opportunistic acquisition strategy focuses on acquiring under-managed or under-capitalized assets with value-add opportunities. Both acquisition strategies will employ a three pronged tactical approach to value creation: 1. Maximize value through strategic capital allocation, 2. Implement best-in-class asset management strategies; and 3. Put a strong management team in place to drive improved margins.
Target Identification + Strong Network + Capital Markets Experience
Our group’s extensive network will continually be leveraged to identify a robust deal pipeline, targeting high quality assets that demonstrate macro-driven growth and high barriers to entry. Collectively, our team has more than 35 years of cross-border experience, having worked through recessions, “black swan events” and various economic and seasonal cycles. K2 Group expects to access larger opportunities, offering sellers greater certainty of ‘close’, due to our diversified strategy and sources of capital.
PROCESS
We have established relationships and partnerships within the hospitality, petroleum and real estate sectors. Through these connections and our internal research capabilities, we identify, underwrite and selects only exceptional investment opportunities.
Once a prospective investment has been identified, our team implements and adheres to a rigorous qualification methodology. Our projects must meet a series of financial modelling tests and withstand a critical analysis of objective and subjective risk factors to qualify as prospective investment opportunities.
Once the decision is made to proceed with a project, our team negotiates and concludes the definitive agreements necessary to acquire a direct beneficial ownership interest in the property and to develop the lands. Our experienced leadership team and active management style result in better execution, fewer surprises, and more successful projects and investments.
IMPACT
We believe it is not only possible to do good while doing well, it’s imperative.
Changing the Status Quo
We are always seeking a better approach – from better tools to better services – to the challenges that face our clients, our people and the communities we serve. A good company challenges the status quo; a great company changes it for the better.
Integrating ESG
Environmental, Social and Governance principles have been integral to K2 Group’s corporate strategy since our founding. We are committed to responsible investing practices and incorporate them into everything we do.
Empowering Our People
It is not enough to help others in need. Social responsibility starts right at home with the hundreds of people part of K2 Group who are committed to giving back. That’s why we’re so dedicated to our people. The more we do for them, the more they can do for their communities.
OPPORTUNITIES
Our current equity investors include some of Canada’s leading financial institutions, private equity funds, family offices and high-net-worth individuals.
Through a combination of prudent management of our investments, dynamic and creative execution of value-add strategies and a recognition of our corporate and social responsibilities, K2 Group employs numerous strategies to realize our objectives and returns for our investors.