Equilibrium Capital Group is an investment firm that is building a portfolio of asset managers who focus on real asset sectors impacted by resource constraints and sustainability. Our asset managers generate superior returns due to their operating expertise and unique investment strategies, including: sustainable real estate, integrated land management, water and wastewater, and energy resource management. Each of these asset managers has built innovative operating companies that we enable to become institutional asset managers.
We work with investors to share our analysis of the transformation in these sectors, as well as the investment strategies that will deliver superior returns and positive social/environmental impact at scale.
The Opportunity
Over the next two decades several multi-hundred billion dollar real asset categories will undergo massive transformation. This transformation is being driven by the capital market’s increasing acknowledgement of the risks and costs associated with rising natural resource constraints. Successfully managing these risks and costs is required for long-term value creation; they are no longer insignificant externalities. This transformation has created the opportunity for new investment strategies that deliver superior returns.
Key Market Drivers
The sectors we invest in are multi-hundred-billion dollar, mature industries that are experiencing unprecedented levels of innovation and disruption due to five global market-moving trends:
Equilibrium identifies the “undiscovered” investment strategies/opportunities within these trends and then builds the asset managers capable of exploiting them.
Our Approach
Research Drives Our Asset Management Strategies
Equilibrium publishes industry leading reports that highlight our proprietary sector research and analytics, designed to qualify sectors and investment strategies with the attractive long term characteristics required to generate superior returns in each asset class.
Target Investment Criteria
In identifying those asset managers that have the potential to scale, Equilibrium focuses on the following attributes: We work with our asset managers across the above three phases to build a scalable organization that can manage hundreds of millions of dollars of institutional capital. It is an opportunity to align our investor network to create stage-appropriate impact. We welcome our investors and clients to participate at any phase of our asset managers’ development to help create the desired risk-return profile and impact. The transparency and openness of this approach is highly collaborative and is proven to accelerate the opportunity. Phase 1 – Development: We invest the first round capital needed to build out the financial and operating models, and the management team. This phase can be as short as 6 months or as long as 18 months (depending on the complexity of the strategy and the structure of the offering.) Phase 2 — Validation: We fund the initial or pilot projects, verifying the assumptions in the underlying business and investment. This enables the company to build projections and will allow the investment model to scale. Phase 3 — Scale: We create the financial product that best suits the investment strategy, with an eye toward the ability to scale. This could be a new financial instrument, a SPV, REIT, a Fund, LLC, a BDC, a unique Debt Structure, or other new vehicle as appropriate. Our financial models include rigorous testing and data to support the projected return and risk calculations. Critical to Equilibrium’s investment model is working closely with our asset managers to support the scaling and execution of their businesses. We focus on:
Building an Institutional Asset Manager

Equilibrium’s Value-Add

