Designing Around Agency Risk
Economic systems engineered so operators win only after investors do.
Agency risk emerges when incentives diverge from outcomes.
Many real estate platforms attempt to manage this through oversight and reporting. These tools add friction but often fail to change underlying behavior.
Allurean addresses agency risk at the economic level.
Before the General Partner participates meaningfully in upside, investors receive:
- Return of capital
- A preferred return
Only after these thresholds are met does the GP share in performance.
Operational incentives follow the same logic. Property management is governed by performance-based contracts rather than static fees, aligning compensation with asset health rather than activity volume.
Incentives are not assumed to align.
They are engineered.