OPTIONALITY CAPITAL
Capital Provider Facility
$100M Working Capital — 8x Annual Velocity
Teaser Presentation — Confidential
April 2026
CONFIDENTIAL — FOR QUALIFIED INSTITUTIONAL INVESTORS ONLY
OPTIONALITY CAPITAL
The Opportunity
$100B+
Annual 1031 exchange volume
Addressable market
7–10 yrs
Traditional DST lock-up period
The problem
2–3 yrs
Optionality Capital hold period
The solution
Property owners who sell investment real estate must identify replacement property within 45 days and close within 180 days — or forfeit tax deferral. DSTs provide a passive, hands-off solution to this time-sensitive need. But traditional DSTs create a new problem: capital is locked for 7–10 years with no liquidity. Optionality Capital shortens hold periods to 2–3 years and provides a built-in exit event where investors can cash out or roll into a new 1031 exchange at disposition.
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OPTIONALITY CAPITAL
How the Engine Works
$200M
Q1
$400M
Q2
$600M
Q3
$800M
8.0x
Q4
$100M facility recycled via ~45-day deployment cycles — 8x annual velocity — deploying $800M/year into DST-eligible assets
Target Assets
NNN credit-tenant retail
Dollar General, Walgreens, CVS-type profiles
10–20+ year lease terms remaining
Geography & Pricing
Southeast US — FL, GA, VA, NC
$1.5M–$3M per asset
Cap rates: 5.75%–6.75%
Deployment Cycle
~45 days per turn
Acquire → form DST → sell interests → return capital → repeat
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OPTIONALITY CAPITAL
Capital Provider Yield Ramp
Cumulative Annual Yield by Cohort
2%
C1
Day 45
4%
C2
Day 90
6%
C3
Day 135
8%
C4
Day 180
10%
C5
Day 225
12%
C6
Day 270
14%
C7
Day 315
16%
C8
Day 360
Each ~45-day deployment cycle generates 2% annualized yield.
8 concurrent cohorts → 16% stabilized annual return.
Deployment Schedule
CohortDayNew AUMYield
1~45$100M2%
2~90$100M4%
3~135$100M6%
4~180$100M8%
5~225$100M10%
6~270$100M12%
7~315$100M14%
8~360$100M16%
AUM compounds as DSTs persist 2+ years while working capital recycles. Steady-state AUM: $1.6B. Fee income: $32M/yr.
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OPTIONALITY CAPITAL
Capital Provider Economics
Capital Stack
Capital Provider — Senior Position First Out
Sponsor Co-invest
1031 Investor Equity
Steady-State Economics
$1.6B
AUM at steady state
$32M
Annual fee income
16%
Stabilized LP yield
Key Terms
  • $100M facility — short-duration working capital
  • ~45-day deployment cycles — 8x annual velocity
  • Repaid from DST interest sales proceeds each cycle
  • No long-term capital lock-up
  • Backed by real property: NNN assets with national credit tenants
  • Senior position in capital stack — first dollars out
  • 2% AUM management fee as sole revenue driver
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OPTIONALITY CAPITAL
Founding Team
Mark Zhang
Chief Investment Officer
  • AVP at GID ($32.1B AUM, 57,000+ units), one of the largest vertically-integrated RE firms in the U.S.
  • Previously Director of Acquisitions at TriBridge Residential ($1.4B portfolio, 21%+ IRR since inception)
  • 15+ transactions totaling 3,700+ units across multifamily, mixed-use, adaptive reuse, and condo conversion
  • Led Plant 64 acquisition ($83.5M, largest apartment deal in Forsyth County history)
  • Direct 1031/TIC structuring experience
  • Princeton, A.B. Economics (Finance Certificate), 2017
Yuan Wang
Chief Technology Officer
  • Quantitative Trader at Tower Research Capital — MFT/HFT interest rate futures
  • Investment Associate at Bridgewater Associates ($150B+ AUM) — highest-rated first-year IA
  • First engineering hire at HG Vora Capital ($7B+ AUM event-driven hedge fund)
  • Employee #5 at Vannevar Labs ($1.5B valuation). 5 patents. Multiple B2B SaaS products as solo operator.
  • Co-investor with Khosla, 8VC, Eric Schmidt in proptech and AI
  • Princeton, A.B. Mathematics, 2017
Complementary expertise. Zhang contributes institutional deal flow, underwriting discipline, and capital markets relationships honed across 3,700+ units. Wang contributes the technology infrastructure to automate DST formation, investor matching, and capital recycling at 8x velocity. Both Princeton 2017.
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OPTIONALITY CAPITAL
Investment Highlights
Asset & Market
  • NNN credit-tenant retail — Dollar General, Walgreens, CVS-type profiles
  • Southeast US focus — FL, GA, VA, NC
  • 6%+ cap rates, 10–20 year lease terms, $1.5M–$3M per asset
  • $100B+ addressable 1031 exchange market
Structure & Edge
  • 8x annual capital velocity — $100M facility builds $1.6B AUM
  • Senior position — repaid from DST sales proceeds each cycle
  • 16% stabilized LP yield via 2%/cohort ramp across 8 cycles
  • Broker-dealer moat — owned distribution for 8x velocity
Optionality Capital
Mark Zhang, CIO & Yuan Wang, CTO
info@optionalitycapital.com
This presentation is for informational purposes only and does not constitute an offer to sell or a solicitation of an offer to buy any securities. Investment involves risk and possible loss of principal. Past performance is not indicative of future results.
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