Angche Sherpa
About Angche Sherpa
Angche Sherpa, 44, is Chief Financial Officer of MacKenzie Realty Capital, Inc. (MKZR) since July 2021; he joined MacKenzie in 2012 and previously served as Director of Accounting and Financial Reporting. He holds a B.S. in Business Administration (Accounting) from San Francisco State University (2006) and is a California CPA (licensed January 2011); prior experience includes staff and senior auditor roles at Moss Adams LLP (2007–2012) . MKZR listed on Nasdaq on November 11, 2024, advancing capital markets access under his tenure . Multi-year operating trends show revenue growth but continued losses; see Performance table below.
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| MacKenzie Realty Capital / MacKenzie (administrator/advisers) | Chief Financial Officer | 2021–present | Oversight of SEC reporting, controls, financing, and REIT operations . |
| MacKenzie (administrator) | Director of Accounting & Financial Reporting | 2012–2021 | Led financial reporting and accounting for multi-entity portfolio; supported consolidation and REIT compliance . |
| Moss Adams LLP | Staff Auditor; Senior Auditor | 2007–2012 | Led audits of financial services including private equity, asset management, and real estate investment companies . |
External Roles
No public-company directorships or external board roles are disclosed for Sherpa in MKZR filings reviewed .
Fixed Compensation
MKZR is externally managed; executive officers do not receive direct compensation from the company, and MKZR has no equity incentive plan at the corporate level. Independent Director pay is overseen by the Compensation Committee; executive officer compensation flows indirectly via advisory agreements and reimbursement under the Administration Agreement .
| Component | Disclosure |
|---|---|
| Base salary | Not applicable (no direct executive compensation paid by MKZR) . |
| Target bonus % | Not applicable . |
| Actual bonus paid | Not applicable . |
| Equity grants (RSUs/PSUs/options) | None—no corporate equity incentive plan; executives are employees of Advisers/Manager . |
| Clawback policy | Board adopted executive compensation clawback policy effective Oct 2, 2023, applicable if MKZR ever pays incentive-based compensation; no restatements triggered recovery . |
Performance Compensation
Advisers did not earn incentive advisory fees in FY 2024 or FY 2025; executive officers’ indirect participation is through advisory fee economics rather than MKZR-specific pay-for-performance plans .
| Metric | Weighting | Target | Actual | Payout | Vesting |
|---|---|---|---|---|---|
| Incentive advisory fee | N/A (external advisory model) | Not disclosed | $0 in FY 2024 and FY 2025 | $0 | N/A |
| Corporate RSU/PSU plan | None | — | — | — | — |
| Option awards | None | — | — | — | — |
Equity Ownership & Alignment
| Item | Amount | Notes |
|---|---|---|
| Beneficial ownership – Common shares | 77,584 | 4.4% of class as of Sept 29, 2025 . |
| Ownership % of common | 4.4% | Based on 1,769,284 common shares outstanding . |
| Direct common shares | 160 | Directly held by Sherpa . |
| Indirect ownership | Shares via Adviser (71,855) and MPF Successors, LP (5,569) over which executives may be deemed to share voting/investment power . | |
| Pledged shares | Not disclosed | No pledging disclosure found; anti-hedging policy requires pre-clearance for hedging arrangements . |
| Ownership guidelines | Not disclosed | No executive ownership guideline disclosure . |
| Section 16 compliance | Timely | All applicable insiders timely filed in Fiscal 2025 . |
Policy notes:
- Insider Trading Policy exists; hedging is strongly discouraged and requires pre-clearance by the Compliance Officer .
- Anti-pledging policy is not specifically disclosed in filings reviewed .
Employment Terms
| Term | Disclosure |
|---|---|
| Start date & current role | Appointed CFO July 2021; employed by MacKenzie since 2012 . |
| Employment agreement with MKZR | None disclosed; MKZR has no employees at corporate level and executives are employed by Advisers/Manager . |
| Severance | Not disclosed . |
| Change-of-control | Not disclosed (MKZR Charter includes ownership limits and governance provisions, but no executive CoC economics disclosed) . |
| Non-compete / Non-solicit / Garden leave | Not disclosed . |
| Post-termination consulting | Not disclosed . |
Performance & Track Record
Operating trends during Sherpa’s tenure as CFO:
| Metric | FY 2023 | FY 2024 | FY 2025 |
|---|---|---|---|
| Revenue (USD) | $15,107,219 | $15,736,103 | $22,059,843 |
| EBITDA (USD) | $2,819,461* | $4,913,860* | $4,692,392* |
| Net Income (USD) | $(4,097,405)* | $(12,077,497)* | $(25,915,680)* |
| Cash from Operations (USD) | $(6,620,774)* | $(595,517)* | $(1,690,102)* |
| Cash & Equivalents (USD) | $17,242,781 | $11,854,946 | $3,788,082 |
| Total Debt (USD) | $93,529,741* | $117,211,456* | $134,687,456* |
*Values retrieved from S&P Global.
Context and execution highlights:
- Nasdaq listing (Nov 11, 2024) improved visibility and facilitated subsequent capital markets activities including ATM program and a Feb 2025 registered offering with warrants at $17.10 per share .
- Operational financing and remediation: Main Street West default resolved via forbearance, $5M paydown, and refinancing with EverTrust Bank in June 2025 .
- Related-party financing: $10M line of credit from PRES (affiliate), 10% interest, 2% origination fee, approved by Independent Directors .
Compensation Structure Analysis
- External management model results in no direct MKZR salary/bonus/equity awards to Sherpa; pay is realized via Advisers’ economics and reimbursement mechanisms, reducing transparency of pay-for-performance alignment at the issuer level .
- Incentive advisory fees were zero in FY 2024 and FY 2025, limiting direct performance-based payouts at the advisory level during these years .
- Clawback framework exists at MKZR if incentive compensation is ever paid; currently moot given the absence of such compensation .
Related Party & Governance Considerations
- Executives (including Sherpa) are affiliated with Advisers/Manager that earn asset management and acquisition fees; MKZR discloses conflicts of interest and oversight via Independent Directors and committee structures .
- PRES affiliate line of credit and affiliate transactions are reviewed/approved by Independent Directors; conflict policies and Code of Ethics require disclosure and approvals .
Investment Implications
- Alignment: Sherpa’s 4.4% beneficial stake supports “skin-in-the-game,” but absence of direct MKZR-linked incentive pay and lack of disclosed ownership guidelines reduce visibility into pay-for-performance alignment .
- Retention risk: Long tenure (since 2012; CFO since 2021) and advisory affiliation suggest continuity; no severance or CoC economics disclosed that would create unusual departure incentives .
- Trading signals: Anti-hedging policy with required pre-clearance reduces risk of hedging misalignment; no pledging disclosure observed; Section 16 compliance timely .
- Execution risk: Elevated leverage and negative operating cash flow underscore continued financing and asset execution demands; CFO has navigated uplisting, capital raises, and debt refinancings, but sustained losses heighten financial discipline requirements (see Performance table above; some values from S&P Global).
- Governance: External advisory structure and related-party transactions necessitate monitoring of fee structures, independence, and conflict management by the Board and committees .