SROA Capital’s vertically integrated private equity real estate and technology platform has established itself as a reliable investment partner for pension fund managers interested in providing employees and pensioners with secure, risk-adjusted returns.
Traditionally, pension fund managers were only allowed to invest in highly-rated bonds and blue-chip stocks. Increasing liquidity and improved transparency in private markets have led to changes in investment rules which now permit pension funds’ strategic and tactical asset allocation strategies to include private equity, real estate, hedge funds, and infrastructure, among other asset classes.
Pension funds now enjoy greater flexibility in strategy and manager selection that can help balance risk and achieve long-term return targets while also satisfying certain non-economic criteria.
Organizations like North America’s Building Trades Unions (NABTU) recognize the need to ensure that real estate investment firms form healthy partnerships with unions when providing labor for real estate construction projects. NABTU is dedicated to supporting the economic stability and security of organized construction workers in North America. Each year, NABTU issues a Responsible Contractor Policy (RCP) Scorecard. The NABTU RCP Scorecard measures how well investment firms that fund both real estate and infrastructure construction provide RCP’s that comply with special servicing requirements.
Together, SROA Capital and NABTU provide pension fund managers with the detailed data and research they need to make smart investment decisions. By working with NABTU to achieve and maintain labor-friendly policies in their investment agreements, SROA Capital has established itself as a trustworthy investment partner. By publishing the results of its RCP Scorecard, NABTU provides pension fund managers with a reliable source of vital investment information.
The NABTU Scorecard utilizes metrics in the following 10 categories to measure the effectiveness of asset managers’ efforts to implement their RCP when hiring unions for real estate and infrastructure construction projects:
Investment fund managers submit responses to detailed questionnaires that examine the thoroughness and effectiveness of their policies in each of the categories listed above. Responses within each category are evaluated and receive a final score ranging from 0 to 5. The more closely an investment firm’s policies align with NABTU’s standards in each category, the higher their score in that category. The highest possible score for each category is 5, so the highest possible total score is 50. Total scores are multiplied by two to put them on a percentage scale of 0 to 100.
In the current reporting period, 24 real estate investment firms received a NABTU Scorecard questionnaire. Six firms did not respond. SROA Capital received a total score of 90%, the second highest of all scores issued among the 18 firms that submitted responses. More importantly, SROA Capital was the only firm to receive a perfect score of 5 in every category in which their policies were evaluated.
SROA Capital’s consistent performance across the range of NABTU’s performance standards testifies to our commitment to maintaining an effective RCP that ensures mutually beneficial relationships among investment managers, contractors, labor unions, and employees. In turn, these policies reinforce the best practices that make SROA Capital a market leader among real estate investment firms and a trusted partner of pension fund managers.
“I am pleased to see that the results of NABTU’s RCP Scorecard accurately reflect SROA Capital’s dedication both to sound investment strategies and to a healthy, robust relationship with organized labor and the communities they support. SROA Capital looks forward to serving as a reliable investment partner for pension fund managers, so that together we can lay the foundation for a prosperous and secure future.”
–Benjamin S. Macfarland III, CEO, SROA Capital–
 At this time, SROA Capital has not yet implemented a company-wide PLA implementation program, so there were no policies to review under this category.