When Citi closed its public finance division, Archana Chandrasekhar took the opportunity to reflect on her 14 years at the firm. She realized that her skill set extended beyond municipal finance to sub-investment grade project finance. This realization led her down a new path, away from the traditional banking world and towards real estate investments.
The result of Chandrasekhar’s introspection is Full Moon Capital, a firm specializing in investing in purpose-built or acquired real estate developments at universities and hospitals. The firm, formed by Chandrasekhar and four leaders at Rieth Jones Advisors, focuses on small and mid-sized specialty or graduate institutions. Projects such as student housing, dining facilities, workforce housing, and power plants are among the investments targeted by Full Moon Capital.
Chandrasekhar and her team see an opportunity in investing in institutions that may be overlooked by larger investment banks. These smaller schools and specialty hospitals still have strong credit ratings and a growing demand for expansion. While many private colleges are facing financial distress and declining enrollments, there are niche schools that require support to thrive and grow.
Chandrasekhar pointed out that a significant portion of off-balance-sheet projects at universities and hospitals are funded through equity. There is a considerable amount of capital available from institutional investors, family offices, and retail investors looking to invest in real estate and social infrastructure projects. Full Moon Capital aims to leverage these funds to support the growth of smaller institutions that may not attract the attention of larger investment banks.
Looking Towards the Future
Chandrasekhar’s transition from public finance to real estate investments showcases the evolving nature of the financial industry. As traditional banking models shift, there is a growing need for innovative approaches to funding and supporting institutions in need. Full Moon Capital’s focus on niche markets and purpose-built real estate projects reflects a broader trend towards specialized investment strategies tailored to meet the unique needs of different sectors within the economy.
Archana Chandrasekhar’s journey from a public finance banker at Citi to a real estate investor at Full Moon Capital highlights the importance of adaptability and continuous learning in the financial sector. By recognizing her diverse skill set and exploring new avenues for investment, Chandrasekhar has positioned herself at the forefront of a changing industry landscape. As the demand for specialized financing solutions grows, individuals like Chandrasekhar are poised to make a significant impact on the future of finance.