When financial giant Citi closed its public finance division, most of its bankers swiftly transitioned to new roles in the municipal market. However, one banker, Archana Chandrasekhar, took a different path. Instead of immediately jumping into a new position, she decided to take a step back and evaluate her next move. Reflecting on her 16 years of experience, Chandrasekhar recognized a unique skill set that extended beyond traditional municipal finance. This self-audit led her towards a new opportunity in the world of purpose-built real estate developments.
Specialization in Complex Deals
During her tenure at Citi, Chandrasekhar specialized in higher education, health care, and social infrastructure projects. She worked on intricate transactions such as developer-driven public-private partnerships, housing initiatives, and energy projects. Towards the end of her time at Citi, Chandrasekhar found herself drawn to more complex and challenging deals that encompassed a broader spectrum of project finance. This shift in focus sparked her interest in exploring a new sector within the industry.
The result of Chandrasekhar’s introspection is Full Moon Capital, a firm dedicated to investing in purpose-built or acquired real estate developments at universities and hospitals. Targeting small and mid-sized specialty or graduate institutions, the firm focuses on projects like student housing, dining facilities, workforce housing, and power plants. Chandrasekhar, along with four leaders from advisory firm Rieth Jones Advisors, founded Full Moon Capital to capitalize on overlooked investment opportunities in the market.
The investment philosophy of Full Moon Capital revolves around supporting institutions that are seeking to expand but may not attract attention from larger investment banks. Chandrasekhar identifies niche schools and specialty hospitals as promising areas for growth and investment. Despite challenges in the education sector, there are numerous strong credits that present viable opportunities for development. By leveraging a network of institutional investors, family offices, and retail investors, Full Moon Capital aims to fund projects that align with their vision.
Focusing on Social Infrastructure
Chandrasekhar emphasizes the importance of providing support to niche institutions that play a vital role in their communities. Approximately one-third to one-half of off-balance-sheet projects at universities and hospitals rely on equity funding. With a growing interest from institutional investors and individuals looking to invest in real estate, there is a significant pool of capital available for social infrastructure initiatives. By bridging the gap between investors and underrepresented projects, Full Moon Capital aims to facilitate the development of essential facilities in the municipal market.
Chandrasekhar’s journey from traditional municipal finance to purpose-built real estate developments showcases a shift in mindset towards embracing new opportunities in the industry. Through Full Moon Capital, she aims to make a meaningful impact by supporting projects that may be overlooked by mainstream investment banks. By focusing on niche institutions and social infrastructure projects, Chandrasekhar hopes to create sustainable growth and positive outcomes in the municipal market.