Income
While the returns in many real asset investments are heavily dependent on an exit, we seek assets that produce cash flows prior to exit in order to reduce the dependence of the portfolio’s performance on exit events.

Assets, not businesses
Wood Creek’s investments are driven by the attractiveness of the underlying asset –its valuation, its prospects for exploitation, and its exit outlook. Wood Creek does not actively seek business risk. Put another way, we assume just as much business risk as we need to in order to optimize the exploitation of an asset. In trading strategies, we seek to capture alpha arising from the underlying dynamics of the market.

Skilled operators
Wood Creek always seeks to partner with operators who are thoroughly experienced in their respective asset classes and markets.

Minimal leverage
Wood Creek only pursues investments which offer required returns without the use of excessive leverage. In practice we manage our investment vehicles with minimal leverage utilizing financing primarily for capital efficiency purposes to reduce and manage cash drag.

Avoidance of headline risk
Wood Creek does not seek to invest in assets or sectors which present reputational risk to the firm or its investors. We seek to avoid the exploitation of disadvantaged populations as well as environmentally irresponsible investments. In addition, we do not invest in locations that, in the manager’s opinion, have weak rule of law or property protection statutes.

Sustainable inefficiency
As a firm, Wood Creek focuses on niche investments where there is a persistent inefficiency creating value. This inefficiency may be created by a number of factors including complexity of investment, opaque pricing or a limited cadre of experienced operators to manage investors’ capital.