The Paine Lake Asia Fund is seeking to raise US$500 million for a new value-add fund that will acquire hospitality assets in Japan and Thailand.
The Paine Lake Asia Fund will be domiciled in the Cayman Islands. Acquisitions in Japan and Thailand will be leveraged with capital from local banks and/or other lenders. Paine Lake's Limited Partners are projected to receive an annualized IRR (achieved over ten years) of more than 15% (Updated January 2023).
Terms and conditions will apply (see Legal Advisory below).
Fundraising will be led by Brian Keegan, a founding General Partner and a former Managing Director of both JP Morgan and Bank of America Merrill Lynch.
The Paine Lake Asia Fund will be seeking 3-4 star hospitality assets, with an ideal size of 200 keys (rooms). Properties can be hotels, resorts, serviced apartments, co-living or other furnished lodging that would be classified in Costar STR data as Upper Upscale, Upscale or Upper Midscale. Paine Lake will seek locations in Tokyo, Osaka, Nagoya and Fukuoka in Japan; as well as Bangkok, Chiang Mai, Phuket, Koh Samui and Pattaya in Thailand.
"The Paine Lake Asia Fund is a stable vehicle to invest in Asian hospitality real estate assets," says Robert Philips, one of the founding partners. "Paine Lake has an experienced operations team in Japan and Thailand that can execute the value-add and achieve our financial targets. Tourism and business travel to these countries is rebounding dramatically since they have reopened."
Paine Lake's Limited Partners will also have an opportunity to invest during a period where the US dollar has remarkable strength.
The fund described in this website is not subject to the same regulatory requirements as mutual funds, including mutual fund requirements to provide certain periodic and standardized pricing and valuation information to investors. There are substantial risks in investing in a fund.
Persons interested in investing in a fund should respectfully note the following:
A fund represents a speculative investment and involves a significant degree of risk. An investor could lose all or a substantial portion of his/her investment. Investors must have the financial ability, sophistication/experience and willingness to bear the risks of an investment in a fund.
An investment in a fund should be discretionary capital set aside strictly for speculative purposes.
An investment in a fund is not ideal for all investors. Only certain persons meeting certain additional eligibility criteria may invest in a fund.
A fund may employ leverage and other investment techniques, and such leverage and other investment techniques may result in increased volatility of the fund’s performance and increased risk of loss.
A fund may trade in alternative investments (real estate), which may increase the risk of loss of the fund. Fund investments are illiquid and there are generally significant restrictions on transferring interests in a fund. There will likely be no secondary market for the interests of a fund.
A fund may have limited or no operating history.
The investment manager of a fund may have certain discretionary authority over the fund’s assets.
A fund may invest in a limited number of securities or instruments, which could result in a limited degree of diversification and higher risk.
A fund generally involves a complex tax structure, which should be reviewed carefully. A fund’s investment strategy may cause delays in important tax information being sent to investors.
The management fees of a fund’s investment manager may be substantial regardless of whether the fund has a positive return.
A fund is not required by regulators to provide periodic pricing or valuation information to investors.
There are likely to be a number of conflicts of interest or potential conflicts of interest in connection with an investment manager’s management of fund assets.
The above summary is not a complete list of the risks and other important disclosures involved in investing in funds. Before making any investment in a fund, investors are advised to thoroughly and carefully review offering documentation with their financial, legal and tax advisors to determine whether an investment is suitable.