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The importance of wealth management has tremendously increased with the growth of income in economies all over the world. This is particularly true as we recover from the COVID-19 pandemic and investors look for safer havens to park their money. Dhanani Private Equity Group, which has been in real estate development and private equity since 2011 has experienced firsthand the changes in the market. The company began by developing convenient stores, quickly moved to retail shopping centers, and is currently developing multifamily properties. DPEG has not only seen tremendous growth in the past few years but the deals have gotten bigger, beginning from a couple of million dollars to single projects now worth $75mm. More recently, DPEG has seen a lot of competition from other private equity firms prop up in the last few years which shows the investor demand is continuing to grow. “Despite that, we will keep forging our path ahead to push our growth along with our investors’ by continuing to diversify our portfolio and build legacy assets.” states Nadyrshah “Nick” Dhanani, Charman, Founder and CEO of Dhanani Private Equity Group.
From the beginning, DPEG’s approach has been the same, developing and acquiring various properties in high-traffic areas that not only provide small and large businesses to thrive but also provide stellar returns for their investors. Along with a strong management team, DPEG has been able to bring it’s investors and partners an average IRR between 25-30% on over 100 projects.
Nick Dhanani is the powerhouse, vision and face behind Dhanani Private Equity Group and has built the business brick by brick from day one. Nick’s career started from humble beginnings as he immigrated to Houston in the 80s and started working at a convenience store as a night cashier. After a couple years of experience, he started to buy and operate his own stores. With the proceeds of his early businesses, Nick decided to start investing in real estate and developing properties and DPEG was born. He initially started building and operating convenience stores which was his expertise. After developing 50+ convenient stores, he quickly pivoted to shopping centers and eventually developed 50+ of those as well. In the middle of this journey came fast food and hotels as well. Most recently, the DPEG team built and exited their very first multifamily project, The Territory at Greenhouse in Katy, TX, and provided a 1.7x equity multiple along with 30% IRR to investors. Nick’s philosophy is that as long as the bottom-line numbers make sense and everyone involved wins, the deal is completely worth it. Along the way, Nick’s vision led him to grow his team and company to over $500mm in assets under management with another $250mm under construction currently.
DPEG was established based on Nick’s vision to help his friends and family build long-term wealth, preserve their capital, and essentially educate them on how to use money as a tool to bring in more returns. While cash flow is important, the true focus is putting our client’s hard-earned money to work.
Sharing experiences from DPEG’s early days, Nick says, “By far the most challenging time for us was when we started and tried to raise money for investments. Without an established track record, you can imagine the difficulty of trying to convince investors to invest with you!” Initially, it was the trust that Nick’s family and close friends had in him that truly helped overcome hurdles. Since then, the team has not looked back and today, word quickly spreads around the city of DPEG’s success and growth as every single project they’ve done so far has turned a profit.
Another challenging time for DPEG was during the early days of the COVID-19 pandemic which completely turned the world and the business world upside down. Millions of companies were either taking losses or completely shut down for good. DPEG and their team was agile in implementing new strategies in an effort to offset the pandemic’s impact. They provided rent relief to tenants for most of 2020 which helped keep them in business. They also worked with investors to ensure their investments were safe as the team believed in practicing patience with a long-term vision, real estate investments and income-producing assets would always come out as a winner.
The DPEG team and their investors are a family that looks out for one another while enjoying the journey together through all the ups and downs. When asked what he’d wish he knew before starting this business, Nick says, “I wish I was able to convey my vision to investors in the early days of the company before laying the groundwork. It was challenging to build new relationships without a track record but we’ve come such a long way since. I am grateful for those who put their trust in us early on and those who continue to do the same since our first days in business.”
As a leader, Nick believes that mindset plays a huge role in the success of a company. Leadership comes from top-down and success is a byproduct of the entire team sharing the same vision. He also believes that operating a lean team where everyone wears multiple hats helps the company grow quicker. Dhanani Private Equity Group is on track to close over $200mm in sales in 2021 alone and is hoping to continue its growth trajectory while doing what they love most – putting the investor first.
