Investment Strategy
Rigorous underwriting. Disciplined structures. Transparent economics.
We source opportunities through proprietary relationships, structure each deal through a dedicated U.S. SPV, and deploy capital through a disciplined, operator-led process anchored in proprietary local relationships.
Investment Process
Five phases from sourcing to return of capital
Every investment Delva Capital makes follows the same disciplined process — because deviation from process is where most investment mistakes are made.
Origination
Ongoing
- Proprietary relationships with DR developers and landowners
- Municipal and government pipeline contacts
- Off-market land identification
- Initial feasibility screening against our investment criteria
Underwriting & Diligence
4–8 weeks
- Independent market comps and absorption analysis
- Development cost modeling with 3rd-party contractor estimates
- Legal title review by DR counsel
- Environmental and permitting assessment
- Financial model stress-testing across downside scenarios
SPV Formation & Capital Raise
4–6 weeks
- U.S. entity formation (Delaware LLC or LP)
- PPM and operating agreement drafted by U.S. securities counsel
- Accredited investor verification process
- Subscription agreement execution and capital funding
Development & Asset Management
24–48 months
- Capital deployment into DR operating entity
- Monthly construction progress reporting
- Quarterly investor updates with financial statements
- Sales velocity tracking and pricing optimization
Exit & Distributions
Per deal timeline
- Unit sales or bulk disposition at target pricing
- Capital returned to investors per waterfall structure
- Carried interest and preferred returns calculated
- K-1 tax reporting issued to all investors
Asset Types
What we build and what we avoid
We focus where our local knowledge and deal structures give us a genuine edge. We pass on opportunities where our competitive advantage is not evident.
Residential Development
Condominiums, townhomes, and villa communities in DR's primary coastal and urban markets. We target mid-market to premium residential product with proven absorption and defensible land basis.
Key Characteristics
- Pre-sale structures that de-risk construction financing
- Project scale determined by market opportunity and capital deployment targets
- Strong diaspora and foreign buyer end-markets
- Target hold: 3–4 years
Mixed-Use Development
Residential-anchored mixed-use projects in urban centers and resort corridors that benefit from retail, food & beverage, or short-term rental income to support development economics and exit optionality.
Key Characteristics
- Requires demonstrated retail or hospitality demand
- Higher complexity; selected partners only
- Income component during development adds downside protection
- Target hold: 4–5 years
Hospitality & Short-Term Rental
Boutique hotel repositioning and purpose-built short-term rental communities in established DR tourist markets. Requires existing or near-complete infrastructure and a clear operational partner.
Key Characteristics
- Targets assets with existing permits and infrastructure
- Operational partner required at underwriting
- STR income from day one reduces capital at risk
- Target hold: 4–6 years
Target Economics
Return profile and fee structure
All figures are projections based on our underwriting models. They are not guarantees of performance.
12–18%
Target Net IRR
Net to investors after management fees and carried interest
1.5–2.0×
Target Equity Multiple
On invested capital at project exit
8%
Preferred Return
Hurdle rate before carry; accrues from date of investment
3–5yr
Target Hold Period
From initial capital deployment to final distribution
Fee Structure
Target returns are projections only and are not a guarantee of investment performance. Actual returns will vary based on project-specific factors, market conditions, and timing of capital deployment and exit. Past performance does not predict future results. All investments involve risk, including the potential loss of principal.
Risk Factors
A frank account of what can go wrong
We believe investors are best served by a clear-eyed view of material risks before committing capital. The following is a non-exhaustive summary.
Development Risk
Real estate development projects may encounter cost overruns, construction delays, permit denials, contractor failures, or other unforeseen obstacles that may extend timelines or reduce projected returns.
Market Risk
Demand for residential and commercial real estate in the Dominican Republic is subject to macroeconomic conditions, interest rate changes, tourism cycles, and shifts in buyer sentiment that are outside our control.
Currency Risk
Development costs are denominated in Dominican pesos. While end-product is typically priced in U.S. dollars, exchange rate fluctuations can affect development economics. We partially mitigate this through dollar-denominated vendor contracts where available.
Political & Regulatory Risk
Changes in Dominican Republic law, taxation, permitting requirements, or foreign investment regulations could adversely affect project economics or timelines.
Liquidity Risk
Investments in Delva Capital SPVs are illiquid. There is no secondary market for LP interests. Investors should expect their capital to be committed for the full hold period and should not invest funds they may need prior to exit.
Concentration Risk
Each SPV is a single-project vehicle. Investors are not diversified across multiple projects unless they invest in multiple SPVs. A total loss on any individual investment is possible.
Important Notice: The risk factors listed above are provided for informational purposes only and do not constitute a complete disclosure of all material risks associated with an investment in a Delva Capital SPV. A complete description of risk factors will be provided in the Private Placement Memorandum (PPM) for any specific offering. Prospective investors should carefully review the applicable PPM and consult with their own legal, tax, and financial advisors before making any investment decision.
Begin Your Investment Journey
Ready to explore the Dominican Republic opportunity?
We work with a select number of investors per project. If you meet the accredited investor standard and are conducting serious diligence, we'd welcome a conversation.
For accredited investors only as defined under SEC Rule 501(a). This is not an offer to sell securities. Any offer will be made only by means of an offering memorandum to qualified investors.