Harvard Private Capital
Due Diligence and Advisory Services
- Cambridge, Massachusetts
- Equity investment arm of Harvard University's endowment fund (now Charlesbank Capital Partners) with $20+ billion under management
In 1990, Harvard Private Capital had the opportunity to take the lead role in a private consortium purchase of a controlling interest in NHP, Inc., at that time the nation's largest owner and manager of affordable housing. Harvard wanted a reliable valuation of NHP's general and limited partner ownership interests in approximately 450 properties totaling 58,500 apartments, including all relevant regulatory and subsidy programs, and encompassing re-syndications and pre-preservation opportunities. The ownership interests represented a large fraction of NHP's market value and were owned by entities controlled by NHP, then itself owned by Berkshire Hathaway.
Within three weeks of engagement, Recap developed an estimated value for the NHP affordable portfolio. The final accepted offer was less than five percent above Recap's suggested opening offer. Recap was able to identify a high-value subset of the NHP Affordable Portfolio for further study, develop a proprietary owner interest valuation model, provide an accurate assessment of assets, estimate aggregate value to NHP, and provide advice on pricing.