Overview
Company
- Private equity fund: Greenhouse Equity Fund, based in New Jersey.
- Focus on Minority and Women Business Enterprise (MWBE) developers.
- Emphasis on multifamily and mixed-use sectors.
Challenges
- Time-consuming underwriting processes hampering overall team responsiveness and productivity.
- Lack of access to financial modeling experts to confidently manage deal complexity for the Greenhouse team and MWBE developers.
- Greenhouse Equity sought access to reliable financial reporting for confident decision-making including the ability to build what-if models with complex financial sources.
Background
Greenhouse Equity Fund, led by Co-Founder and Partner Maitland Stewart, is a private equity fund based in New Jersey with a mission to close the legacy wealth gap and promote homeownership in underserved communities. Their primary focus is on providing equity to Minority and Women Business Enterprise (MWBE) developers who have historically faced wealth disparities. These developers specialize in managing and acquiring income-generating properties, with a particular emphasis on multifamily and mixed-use sectors. Greenhouse Equity Fund is committed to achieving market-competitive returns for investors while creating opportunities for affordable housing and fostering economic growth in marginalized communities.
"U-Rite's unparalleled support and guidance surpassed our expectations, offering us invaluable assistance and a level of hand holding that truly distinguished them from the other options we considered."
Challenges
1. Productivity Issues - Greenhouse Equity faced challenges in creating reliable and comprehensive financial models for their investments. Relying solely on a basic Excel spreadsheet compromised their confidence in the quality and thoroughness of the models. As their needs grew more complex, such as aggregating property-level returns into a fund model with a promote structure, the limitations of the Excel models became evident. This led to reduced efficiency, increased risk of errors, limited scalability, collaboration constraints, and the inability to accommodate unique investment requirements.
2. Lack of Guidance - The Greenhouse Equity leadership team recognized they lacked the expertise and time to create the sophisticated model required to support their business and assist their MWBE developers. Ideally, they wanted a partner whose product offering was going to be quickly adopted by their team together with direct access to seasoned analysts that have built complex financial models that can be available on demand to meet the needs of their clients and investors.
How U-Rite Solved Those Challenges
After extensive market research and consultations with their peer community, Greenhouse Equity was introduced to U-Rite's Underwriting on Demand Service.
U-Rite revolutionized the user experience by leveraging Excel, resulting in a rapid adoption rate while providing Greenhouse Equity 24/7 access to seasoned analysts who could build models on their behalf, provide feedback on models, evaluate potential deals, and coach the Greenhouse team to enhance their knowledge and deliver a superior service to MBWE clients.
"We weren't just looking for a software provider; we needed a true partner who could offer valuable guidance and unwavering support. U-Rite stood out from the other alternatives we explored by providing exactly what we were searching for."
Working in synergy, U-Rite and Greenhouse Equity successfully provided accurate financial models, enabling investors and MBWE clients to expedite new investments and drive business growth.
1. Streamlined Integration of Diverse Funding - U-Rite's personalized advisory services proved instrumental for Greenhouse Equity in integrating diverse funding sources, such as state funding, federal funding, and tax credits, into their financial models. By receiving valuable guidance and tailored recommendations, Greenhouse Equity successfully managed the complexities of incorporating various funding streams, ensuring accuracy and compliance in their models.
2. Enhanced Investment Analysis: U-Rite's Reporting Features - Greenhouse Equity experienced a significant transformation in their investment analysis with U-Rite's powerful reporting features. The detailed line-item information provided by U-Rite enabled Greenhouse Equity to make informed decisions, driving tangible outcomes for their business. The ability to adjust assumptions instantly within a user-friendly application empowered Greenhouse Equity to make timely and accurate decisions, demonstrating their expertise and meeting investor expectations.
3. Future-Proof Reporting and Consistency - Greenhouse Equity valued the assurance of future consistent reports provided by U-Rite. Reliable reporting plays a pivotal role in their business success, and U-Rite's reporting capabilities ensured that Greenhouse Equity could rely on accurate and standardized reports consistently. This assurance allowed them to plan and strategize with confidence, while satisfying the expectations of their investors.