#21 Lloyd Lee, Co-Founder and Managing Partner of Yoo Capital
Apr 6, 2023
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Lloyd Lee, Co-Founder and Managing Partner of Yoo Capital, shares his 24 years of experience in real estate private equity and principal investing. They discuss topics such as having an internal compass, setting up international offices, London real estate opportunities, contrarian investing, and where Lloyd would invest £500m of equity.
Having a strong internal compass and staying true to it is crucial for long-term success in the real estate industry.
U Capital follows a contrarian investment approach, focusing on fundamental value and long-term potential to identify overlooked opportunities in the market.
U Capital aims to revitalize and repurpose assets to meet the changing needs of the community, creating vibrant mixed-use environments that contribute to the arts, entertainment, and culture.
Deep dives
The story behind Lloyd Lee's entry into real estate
Lloyd Lee's passion for real estate began at a young age, drawing houses and being fascinated by the way real estate shapes people's lives. With a background in pre-med and history of architecture, he pursued a career in real estate private equity and principal investing, working at Kenneth Leventhal, Starwood Capital Group, and Marathon Asset Management before co-founding U Capital. Lloyd's early experiences during the economic downturn in the 90s shaped his understanding of the real estate industry.
Building a successful team and the importance of an internal compass
Lloyd emphasizes the need for a strong and talented team when building a business. He believes in finding individuals who are smart and experienced, and who share a similar vision and values. Lloyd also stresses the importance of having a strong internal compass, which guides decision-making and keeps the focus on long-term value. He believes that staying true to this compass, even when faced with challenges, is key to success.
Contrarian investing and the value of fundamental analysis
U Capital follows a contrarian investment approach, focusing on fundamental value and long-term potential in the real estate market. Lloyd emphasizes the importance of looking beyond market volatility and emotional reactions and instead focusing on the fundamental value of assets. By doing so, U Capital seeks out opportunities that others may have overlooked or undervalued, allowing them to create value and generate strong returns for their investors.
The transformative vision for Olympia and other assets
U Capital's portfolio includes transformative projects like Olympia, a historic exhibition space in London. With a long-term vision in mind, U Capital aims to create a vibrant mixed-use environment that showcases the arts, entertainment, music, and culture. They believe in co-authorship, partnering with organizations and individuals who can contribute to the unique character and offerings of the space. Similarly, their acquisition of Shepherd's Bush Market and Sable Theatre reflects their commitment to revitalizing and repurposing assets to meet the changing needs of the community.
The next investment and the future of creative industries
U Capital's next investment focuses on Central London and the creation of a new creative quarter. With resilience observed in the creative industries during the COVID-19 pandemic, U Capital sees untapped potential in sectors such as hospitality, theater, and other creative fields. They aim to create a vibrant hub that meets the demands and aspirations of these industries, contributing to the continued growth and success of London as a global creative center.
Lloyd Lee is the Co-Founder and Managing Partner of Yoo Capital. He has over 24 years of experience in real estate private equity and principal investing and has been involved in £12 billion of real estate acquisitions, public and private corporate opportunities, special situations and asset management turnarounds across the UK, Europe, US and emerging markets. He graduated from both Harvard and Cornell University and has worked at Starwood Capital and Marathon Asset Management before setting up Yoo Capital with serial entrepreneur, John Hitchcox. I sat down with Lloyd to discuss a broad range of subjects which covered some of the following topics:
Having an Internal compass
Setting up international offices
Elephant hunting*
Why BIG deals matter to institutional capital
London Real Estate opportunities
Contrarian investing
Oh and one last question - who are the People, what Property, and in which Place Lloyd would invest should he have £500m of equity at his disposal
Catch the full episode which will be live on Spotify and Apple from Thursday this week. The People Property Place Podcast is powered by Rockbourne. Who do you want to see on the Podcast? *BIG complex deals (no actual elephants are, will or have been hunted)
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