Market.ch: Business > Real Estate
Interview with Alexandre Costa, CEO of LakeRock Capital

Geneva-based LakeRock Capital is an investment firm specialising in high-end residential real estate. In 2023, it launched a closed-end Swiss real estate fund, LakeRock Swiss SCmPC, reserved for qualified investors. Its strategy draws inspiration from private equity, focusing on short cycles, value creation and strong alignment of interests between the manager and investors. Today, LakeRock is raising its return ambitions while welcoming Max Chuard, former CEO of Temenos, as a shareholder. An interview with Alexandre Costa, co-founder and CEO of LakeRock Capital.

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What assessment do you draw from the first years of the fund launched in 2023?

The assessment is extremely positive. Of the nine assets in the first fund, four have already been sold. This enabled us to return nearly 20% of equity to investors while generating a double-digit IRR, well above our initial expectations. For a Swiss high-end vehicle, this is a very strong validation of our approach.

You are now targeting returns significantly above your initial objectives. How do you explain this?

At launch, our target was an IRR of 12% per year. Today, based on the performance already achieved and the momentum of our projects, we believe we can reach close to a 20% IRR upon full liquidation of the fund¹. This is the result of a disciplined strategy and a highly differentiated positioning within the Swiss market.

How does your strategy differ from traditional real estate funds?

Our model is closer to that of an institutional real estate trader. We acquire residential assets off-plan only once the building permit is fully approved, and then resell them 6 to 24 months later. We focus on three types of assets:

• units within developments with approved permits,

• land plots with building permits,

• houses to be renovated.

In all cases, we invest only when visibility on value creation is high and project duration is fully controlled. This discipline allows us to generate short cycles and attractive performance.

How does the Swiss economic environment influence your results?

The Swiss context clearly reinforces our strategy. The country faces a structural housing shortage, particularly acute in Geneva, Vaud and Zurich, where vacancy rates are historically low—down to 0.3% in Geneva. In addition, Switzerland remains a preferred destination for UHNWI, which sustainably supports demand for the premium residential assets we target.

Switzerland is experiencing a structural housing shortage, particularly in Geneva, Vaud and Zurich, where vacancy rates are historically low.

How do you ensure alignment of interests with your investors?

This is a key element at LakeRock. Our remuneration depends primarily on performance at exit, not on assets under management. In addition, the executives and shareholders invested more than 25% of the equity of the first fund themselves. We are fully aligned with our investors.

LakeRock has just welcomed Max Chuard as a shareholder. What does this represent for you?

It is an extremely strong vote of confidence from an investor with his level of experience. His arrival validates our model, our vision and our growth strategy. It also gives us additional resources to accelerate our development in the coming years.

What are LakeRock’s next areas of development?

We aim to further strengthen our position as a specialist in high-end residential real estate while maintaining strict investment discipline. Demand remains strong, the Swiss market is structurally supportive, and our initial results confirm the relevance of our strategy. The objective is clear: to continue creating value through short cycles and robust performance, regardless of the macroeconomic environment.

A final word for your current and future investors?

The numbers speak for themselves, but our priority remains discipline and execution. We are doing everything we can to maintain an ambitious return trajectory over the long term, while preserving exemplary alignment with our investors. The first results of the fund confirm that our model works, and we are confident about what lies ahead.