Hunter Chase 
 CAPITAL PARTNERS 
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 Investment. Each Investor in a Hunter Chase Capital Partners sponsored program will have the information they need when they want it.  HCCP 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
Hunter Chase Capital Partners maintains an integrated system for both qualitative and quantitative 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,
  • Rent and/or sales revenue generation and marketing,
  • Cost accounting, and
  • 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 in the course of monitoring activities is entered into a database program for tracking and reporting, and then reduced to a uniform 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 frequently, and site visits occur on a regular basis (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�, �Asset Issue Plan�, �Change Request Package� and Site Visit reports to the Investor.

The Principals of Hunter Chase Capital Partners 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 HCCP equity program is uniformity of administration across all investment programs and Investors. This uniform base allows HCCP to tailor its upper-tier, or funds-level, reporting to fit investor needs and preferences.
Asset Quality Rating
Hunter Chase Capital Partners Asset Quality Rating (“AQR”) classification system provides a useful measure by which to qualitatively assess Investment status. In addition to allowing easier communication of Investment status generally, AQR grading allows comparison of Investment status portfolio-wide (as opposed to Proforma comparison, which is an Investment-specific measure). Further, AQR class changes trigger particular asset management activities, particularly regarding qualitiative 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 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 levels by which HCCP assessed the need for heightened operational oversight and attention are:


A    No significant investment quality degradation, with high probability of achieving proforma investment return thresholds. Successful in all relevant regards.
B    Significant issues have arisen that may adversely affect performance in a material way. 
C    Serious problems have developed which appears likely to adversely affect performance if not resolved.


Investment Risk
The four strata by which Hunter Chase Capital Partners assesses risk of achieving Proforma returns of and on Investments are:

1.  It appears the Investment a) will achieve full Proforma returns on the Investment and also b) achieve full return on the Investment
2.  It appears the investment a) will achieve full return on the Investment but b) may fail to achieve full Proforma return on the Investment.
3.  It appears the Investment a) may fail to achieve full returns on the Investment and also b) may fail to achieve Proforma return on the Investment
4.  It appears the Investment a) will fail to achieve full returns on the Investment and also b) will fail to achieve Proforma return on the Investment.


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