Credit Where Due

It is easy to be cynical when analyzing alternative investments packaged for retail distribution.  They tend to have high fee structures, lack liquidity, and be quite opaque in terms of structure and governance.  Investment and operating strategies tend to be driven by marketing considerations rather than sound business or investment fundamentals.

That said, I would like to publicly commend American Realty Capital Trust (ARCT) on engineering a liquidity event for investors and an exit for the entire transaction within eighteen months of the close of the offering.  And at prices ($10.50 and $12.20) in excess of the offering share price (as reported in Investment News).

There may be some questions raised about the exit coming so quickly on the heels of the listing.  Just read the Comments below the cited article.  The fact remains that investors received something like a 7% dividend during the holding period, and will recognize anywhere from 5% to a 22% capital appreciation.  All within 18 months of the close of the offering.

Kudos to American Realty Capital Trust and to Nick Schorsch and Wiliam Kahane for their efforts in achieving such a positive outcome for investors.