Knowledge Book

Descriptions of key aspects of sectors Kakol Real Estate works in.

Sector Knowledge

Real Estate

Fees in Real Estate

Success fee

A fee typically paid upon the successful execution of a deal, often calculated as a percentage of the total transaction value.

Retainer fee

A fixed monthly payment that covers ongoing advisory costs, travel, and administrative expenses.

Additional costs

Fees associated with specific tasks such as document preparation, investment decks, and detailed market analysis.

Due diligence

Due diligence is an investigation, audit, or review performed to confirm facts or details of a matter under consideration.

In the financial world, due diligence requires a comprehensive examination of financial records before entering into a proposed transaction with another party.
Sector Knowledge

Funds & VCs

Investment Criteria

Professional funds and venture capital partners typically seek scalable business models with a clear path to profitability.

Key performance indicators include monthly recurring revenue (MRR), customer acquisition cost (CAC), and customer lifetime value (LTV).
Sector Knowledge

Metals & Commodities

Bullion & Spot Price

Bullion refers to precious metals valued by their weight and purity (bars or coins) rather than face value.

The Spot Price is the current, immediate market price for a physical commodity available for immediate delivery.

Refining & Purity

Assay

The chemical testing of a metal sample to determine its exact purity and fineness.

Fine Content

The actual amount of pure metal in a bar or coin, excluding any alloying metals.

Karat (K)

A measure of gold purity; 24K is considered pure gold (99.9%+).

Hallmark

An official stamp on a metal product certifying its purity, origin, and weight.

Refining

The industrial process of purifying raw metal to a higher commercial grade.

Mint

A facility where raw metals are refined and fabricated into standardized bars or coins.

Physical Metal Forms

Bar (Ingot)

A refined, cast, or minted block of metal with specific purity and weight markings.

Billet

A semi-finished casting of metal with a circular or square cross-section.

Cathode

A highly pure form of metal (e.g., copper cathode) used in industrial manufacturing.

Kilo Bar

A standard industrial bar weighing 1,000 grams (approx. 32.15 troy ounces).

Coin (Bullion)

A government-minted coin valued primarily by its metal content rather than face value.

Proof

A coin struck using special dies and higher pressure for a highly polished, detailed finish.

Storage & Logistics

Allocated Metal

Physical metal stored in a vault that belongs to the owner outright, not the vault provider.

Unallocated Metal

Metal held in an account that is not segregated; the holder is a general creditor of the bank.

Troy Ounce

The standard unit of weight for precious metals, equaling approximately 31.103 grams.

London Fix

The daily benchmark price for gold and silver set by major trading firms in London.

Warrant

A document of title for metal stored in a warehouse, transferable to take ownership.

Delivery Point

The specific location designated by an exchange where the physical commodity must be delivered.

Trading Mechanics

Futures Contracts are standardized agreements to buy or sell a specific quantity of a commodity at a set price on a future date.

Markets often experience Contango (futures price > spot price) or Backwardation (spot price > futures price) depending on supply and storage costs.

Commodity Classifications

Precious Metals

Rare, high-value metals including gold, silver, platinum, and palladium.

Base Metals

Industrial non-ferrous metals that oxidize easily, such as copper, aluminum, and zinc.

Energy Commodities

Natural resources used for power and transport, like oil, natural gas, and coal.

Soft Commodities

Agricultural products that are grown rather than mined, such as coffee, sugar, or cotton.

Industrial Commodities

Metals and materials (like iron ore) used primarily for manufacturing and construction.

Actuals

The physical commodity itself, as opposed to a paper-based futures contract.

Market & Risk

Hedging

Taking a position in the futures market to offset price risks in the physical market.

Basis

The difference between the local cash price of a commodity and the futures contract price.

Forward Contract

A customized, non-standardized agreement to buy or sell a commodity at a future date.

Carrying Charge

The total cost of storing, insuring, and financing a physical commodity over time.

Mark-to-Market

The daily adjustment of a trading account based on the closing price of the futures contract.

Margin Requirement

The cash deposit required to open and maintain a position in the futures market.

Sector Knowledge

Valuation & Metrics

Performance Indicators

Net Present Value (NPV)

The difference between the present value of cash inflows and outflows over a period of time, used to analyze the profitability of a projected investment.

Internal Rate of Return (IRR)

The discount rate that makes the net present value of all cash flows from a particular project equal to zero.

Return on Investment (ROI)

A measure used to evaluate the efficiency of an investment by comparing the gain relative to its cost.

Free Cash Flow (FCF)

The cash a company generates after accounting for cash outflows to support operations and maintain its capital assets.

Earnings Per Share (EPS)

The portion of a company's profit allocated to each outstanding share of common stock, serving as an indicator of profitability.

Weighted Average Cost of Capital (WACC)

The average rate a business pays to finance its assets, calculated by weighting the cost of each capital component (debt and equity).

Sector Knowledge

Accounting & Governance

Financial Reporting

Accounts Payable (AP)

Short-term debt that a company owes to its suppliers and creditors for goods and services received.

Accounts Receivable (AR)

The proceeds or money that a company is entitled to receive from its customers for goods or services provided on credit.

Working Capital

The difference between a company's current assets and its current liabilities, representing operational liquidity.

Goodwill

An intangible asset that arises when a buyer acquires an existing business for more than the fair market value of its net assets.

Corporate Governance

The system of rules, practices, and processes by which a firm is directed and controlled, balancing the interests of stakeholders.

Consolidated Financials

Financial statements that combine the assets, liabilities, and results of a parent company and its subsidiaries.

Sector Knowledge

Capital & Strategy

Strategic Finance

Capital Structure

The specific mix of debt and equity used by a company to finance its overall operations and growth.

Leverage

The use of borrowed funds (debt) to increase the potential return of an investment or project.

Leveraged Buyout (LBO)

The acquisition of another company using a significant amount of borrowed money to meet the cost of acquisition.

Capital Expenditure (CapEx)

Funds used by a company to acquire, upgrade, and maintain physical assets such as property, plants, or equipment.

Cost of Capital

The minimum return that a business must earn before it can generate value, representing the hurdle rate for investments.

Sector Knowledge

Blockchain Core

Blockchain

A blockchain is a decentralized, distributed, and public digital ledger used to record transactions across many computers.

It is characterized by its immutability, meaning data cannot be altered or deleted once recorded, and its transparency, allowing all participants to verify transactions.

Infrastructure & Consensus

DLT

Distributed Ledger Technology: A system for recording asset transactions shared across multiple sites or institutions.

Node

A computer that participates in a blockchain network to verify and store transaction data.

Consensus Mechanism

A protocol (like PoW or PoS) used to achieve agreement on the validity of transactions in a network.

Smart Contract

Self-executing code that automatically carries out the terms of an agreement when conditions are met.

Fork

A change to the blockchain protocol that split the chain into two paths; can be hard (incompatible) or soft.

Mainnet / Testnet

The primary functional network (Mainnet) versus a developer-focused testing environment (Testnet).

Sector Knowledge

Digital Assets

Tokens & Currencies

Cryptocurrency

A digital currency secured by cryptography, operating independently of central authorities.

Altcoin / Stablecoin

Non-Bitcoin cryptocurrencies (Altcoins) and those pegged to stable assets like fiat (Stablecoins).

NFT

Non-Fungible Tokens represent ownership of unique digital or physical assets like art or collectibles.

Tokenization

The process of converting rights to an asset (e.g., real estate) into a digital token on a blockchain.

CBDC

Central Bank Digital Currency: A digital form of a country's fiat currency issued by the central bank.

Security Token

A digital asset representing fractional ownership in an underlying entity, subject to regulation.

Sector Knowledge

Wallets & Security

Access & Protection

Private Key

A secret cryptographic key that allows a user to sign transactions and prove ownership of assets.

Cold Storage

A hardware wallet or device not connected to the internet, used for secure, long-term storage.

Seed Phrase

A 12-24 word recovery phrase used to restore access to a digital wallet if a device is lost.

KYC / AML

Verification processes (KYC) and regulations (AML) designed to prevent illicit financial activities.

Multi-Sig

Multisignature wallets require more than one private key to authorize and execute a transaction.

Sector Knowledge

Trading & Market

Market Dynamics

Volatility & Liquidity

Market factors defining price fluctuations (Volatility) and ease of buying/selling (Liquidity).

Bull & Bear Market

Sustained periods of rising prices (Bull) or declining prices (Bear) in the asset markets.

Gas Fee

The transaction fee paid to network validators to process and secure data on the chain.

Order Book / Arbitrage

The list of buy/sell orders and the practice of exploiting price differences across exchanges.

ATH / Floor Price

The highest price reached (All-Time High) and the lowest entry price for an NFT collection.

Sector Knowledge

DeFi & Web3

Decentralized Finance (DeFi)

DeFi refers to financial services built on top of public blockchains that operate without traditional intermediaries like banks.

Key infrastructure includes Decentralized Exchanges (DEX) and Automated Market Makers (AMM) that manage liquidity.

Advanced Protocols

DAO

Decentralized Autonomous Organizations governed by code and stakeholder voting rather than hierarchy.

Layer 1 & Layer 2

The base blockchain (L1) and the scaling solutions (L2) designed to improve speed and efficiency.

Oracles

Services that bridge smart contracts with external, real-world data like price feeds or weather.

Staking & Yield Farming

Locking assets to secure networks (Staking) or provide liquidity to earn returns (Yield Farming).

Zero-Knowledge Proof

A method to prove a statement is true without revealing the secret information itself.

Sector Knowledge

Strategy & Management

Strategic Alignment

Strategic Alignment ensures that a company’s goals, activities, and resources are perfectly in sync with its overall vision.

Effective Due Diligence acts as a safeguard, providing a methodical investigation of a business or person prior to any major investment or contract.

Performance & Optimization

Best Practices

Proven methodologies that consistently show superior results compared to other means through research and experience.

Benchmarking

The process of comparing business performance metrics against industry best practices or top competitors.

KPIs

Key Performance Indicators: Measurable values that demonstrate how effectively a company is achieving its objectives.

Scalability

The capability of a business to handle growing amounts of work or sales in a controlled and capable manner.

Actionable Insights

Information that can be directly acted upon to improve business performance and decision-making.

Bottleneck Analysis

Identifying specific constraints within a process that reduce overall throughput and efficiency.

Organizational Frameworks

SWOT Analysis

A strategic framework used for identifying internal Strengths and Weaknesses, and external Opportunities and Threats.

Value Proposition

A concise statement that summarizes why a consumer should choose a product or service over the competition.

Core Competency

A defining capability or advantage that distinguishes a business from its competitors in the market.

Change Management

Approaches for preparing and supporting individuals and teams through organizational transitions.

Risk Mitigation

Developing strategies to enhance opportunities and reduce potential threats to project and business objectives.

Business Continuity

Creating systems of prevention and recovery to deal with potential threats to a company’s ongoing operations.

Sector Knowledge

Financial Investment

Fiduciary Duty

A Fiduciary Duty is a legal and ethical obligation to act solely in the best interest of another party.

Capital Allocation is the strategic distribution of financial resources to different projects or units to maximize shareholder value.

Financial Controls

EBITDA

Earnings Before Interest, Taxes, Depreciation, and Amortization: a proxy for operational cash flow.

Budgetary Control

A system where plans are prepared in advance and constantly compared with actual results for management control.

Compliance Audit

A comprehensive review to ensure an organization is following all external laws and internal regulations.

Revenue Recognition

An accounting principle that identifies the specific conditions under which revenue is recognized as earned.

Valuation

The analytical process of determining the current worth of an asset, subsidiary, or entire company.

Divestiture

The strategic disposal of business components, such as subsidiaries or assets, to streamline operations.

Investment Strategy

AUM

Assets Under Management: the total market value of investments managed on behalf of clients.

Asset Allocation

A strategy that aims to balance risk and reward by apportioning a portfolio’s assets according to goals.

Cash Flow Forecasting

The process of estimating the flow of cash in and out of a business over a specific future period.

Cost Optimization

A business-focused approach to reducing expenses while maximizing business value and operational quality.

Arbitrage

The practice of taking advantage of price differences between two or more markets for the same asset.

Capital Structure

The specific mix of debt and equity used by a firm to finance its overall operations and growth.

Sector Knowledge

Technical & IT

System Architecture

System Architecture is the conceptual model that defines the structure, behavior, and various views of a technical system.

Technical Due Diligence is the process of evaluating the tech stack, architecture, and engineering team of a target company.

System Lifecycle

Legacy Migration

The process of transferring data and functionality from outdated computing systems to modern platforms.

Interoperability

The ability of different computer systems or software to exchange and make use of shared information.

Scalability Testing

Testing that measures a system’s ability to handle increased load without performance degradation.

Cloud Optimization

Selecting the best cloud resources to maximize performance while minimizing overall operational costs.

Governance & Security

Data Governance

The overall management of the availability, usability, integrity, and security of enterprise data.

Cybersecurity Audit

A systematic and thorough evaluation of the security of a company's information systems.

API Integration

The connection of two or more applications via their interfaces to exchange data and functionality.

Technical Feasibility

An evaluation of a proposed project to determine if it can be achieved using current technology.

Sector Knowledge

Mergers & Acquisitions

Mergers and acquisitions

The terms “mergers” and “acquisitions” refer to the consolidation of companies or assets.

In an acquisition, one company purchases another outright. A merger is the combination of two firms to form a new legal entity.
Sector Knowledge

Deal Origination

Sourcing Channels

Direct Outreach

The proactive identification and direct engagement with potential target companies or strategic partners.

Intermediary Network

Leveraging established relationships with investment banks, brokers, and industry-specific advisors.

Proprietary Data

Utilizing advanced database analytics to identify off-market opportunities and niche sector leaders.

Sector Knowledge

Institutional Onboarding

Compliance & KYC

Institutional onboarding requires rigorous Know Your Customer (KYC) and Anti-Money Laundering (AML) protocols.

Standardized procedures ensure rapid, secure, and fully compliant entry into global financial markets.
Sector Knowledge

Project Advisory

Project Lifecycle

Project advisory spans the entire lifecycle from feasibility studies through to execution and final handover.

Dedicated management teams ensure that projects are delivered according to specifications, timeline, and budgetary constraints.
Sector Knowledge

Financing

Financing Structures

Equity Financing

The process of raising capital through the sale of shares in a business to institutional or private investors.

Debt Financing

Raising capital by borrowing funds that must be repaid over a specified term with interest.

Mezzanine Financing

A hybrid of debt and equity financing that gives the lender the right to convert to an equity interest in case of default.