Our business thesis, in short, is to recover and build value by investing into, restructuring, and repositioning assets that are impaired by badly conceived legal structures, such as legacy timeshare regimes, troubled condominiums, and legacy tenant-in-common real estate pools. We invest in such properties and work together with Boards and owners to avoid predatory management contracts, attract good managers, reestablish a marketable title, and make their own good decisions about the future of the property.
Lemonjuice Capital was founded by Alexander Krakovsky, a seasoned business executive and entrepreneur. In the 90s, he managed a US Government sponsored $140mm investment fund for Eastern Europe and earned the second-highest return in the entire program. After the Enron collapse, Mr. Krakovsky saw an unmet need in the energy sector for a well-governed company. He co-founded a new power company, ContourGlobal, which builds and operates power plants around the world. ContourGlobal grew from five people to over 1,200 employees today. The company issued public stock (“IPO”) in London under stock symbol CGO.
In 2017 Lemonjuice Capital attracted over $30mm in venture capital investments.
The Gridlock Economy meets the Sharing Economy
Vacation ownership developers like to say that timeshares are “at the forefront of the sharing economy.”
However, when certain timesharing arrangements become unsustainable, sharing turns to gridlock. That’s where we come in. Legacy timeshares, which are the primary targets of our business, are best attributed to what economists call the “Gridlock Economy.”
In the Gridlock Economy (otherwise known as “Tragedy of the Anti- commons”), too many fragmented owners of a single asset wreck markets, break down cooperation, and destroy value. Many legacy timeshares are currently selling well below their underlying real estate value. Although timeshare owners technically co-own valuable real estate, many pay to get rid of their “property.”
The time has come to change that.
If you are a manager or a board member looking to recover the value of your shared property, please fill out our contact form. We would love to hear from you.