Kjerstin Hatch
About Kjerstin Hatch
Kjerstin Hatch, 52, is an independent director of MacKenzie Realty Capital, Inc. (MKZR) since September 23, 2024. She is Founder and Managing Principal of Lapis Advisers, LLP (est. 2009), with 30+ years in special situations across municipal bonds, illiquid real estate, and distressed companies totaling well over $2 billion; she holds a B.A. in Political Economy of Industrialized Societies from UC Berkeley .
Past Roles
| Organization | Role | Tenure | Committees/Impact |
|---|---|---|---|
| Lapis Advisers, LLP | Founder & Managing Principal (focus on municipal underperformers; special situations) | 2009–present | Managed 1,000+ investments across municipal bonds and >150 distressed/bankrupt companies; emphasis on real estate, healthcare, senior living, education and housing assets |
| Various alternative investment roles | Portfolio manager and acquisitions specialist (alternative investments) | ~30 years | Experience underwriting financials/audits for public and private borrowers |
| MacKenzie Realty Capital, Inc. | Independent Director | Sep 23, 2024–present | Member: Audit, Nominating, Compensation Committees |
External Roles
| Organization | Role | Tenure | Notes |
|---|---|---|---|
| Lapis Advisers, LLP | Founder & Managing Principal | 2009–present | Majority owner; deep special situations expertise |
Board Governance
- Committee assignments: Hatch serves on Audit (member), Nominating (member), and Compensation (member); Audit Chair is Tim Dozois; Nominating Chair is Tom Frame .
- Attendance and engagement: In FY2025, the Board/committees met 9 times; each director attended all Board and committee meetings on which they served .
- Independence: Board determined Hatch is independent under Nasdaq standards; review considered that an affiliate of the Company’s Investment Adviser owns a 12.5% minority equity interest in Lapis Advisers, LP, with no operational role or control; Hatch remains majority owner; Board affirmed independence for all directors except non-independent director Chip Patterson .
- Leadership structure: Non-independent Board Chair (Chip Patterson); no designated Lead Independent Director; independent directors hold executive sessions without management/non-independent directors .
- Committee activity: Audit met 4 times; Nominating met 1 time; Compensation met 1 time in FY2025 .
Fixed Compensation
- Policy structure (Independent Directors): Annual cash retainer $48,000 (effective July 1, 2023), plus $1,000 per in-person Board meeting, $500 per telephonic Board meeting, and $500 per committee meeting; committee chairs receive $1,000 annual fee; no compensation for non-independent directors .
| Director | FY2025 Fees Earned (Cash) |
|---|---|
| Kjerstin Hatch | $42,223 |
Performance Compensation
- Director equity/option awards: None; the Company maintains no pension, equity participation or retirement plans for directors .
| Metric | Policy Detail |
|---|---|
| Equity awards (RSUs/PSUs) | None for directors |
| Options | None for directors |
| Performance-based cash | None; director compensation is fixed cash retainers/meeting fees |
| Performance metrics (TSR, EBITDA, ESG) | Not applicable to director pay |
Other Directorships & Interlocks
| Item | Detail |
|---|---|
| Current public company boards | None; Company states none of the directors serve on other public company boards (other than MRC) |
| Potential interlock/conflict | An affiliate of the Company’s Investment Adviser owns 12.5% of Lapis Advisers, LP (Hatch’s firm); no operational role or control at Lapis; Board concluded independence under Nasdaq standards |
Expertise & Qualifications
- Special situations investor with 30+ years managing over a thousand municipal and distressed investments (>150 distressed/bankrupt companies), with emphasis on real estate, healthcare, senior living, education and housing assets; extensive underwriting of financial statements and audits for public/private borrowers .
- Education: B.A., UC Berkeley (Political Economy of Industrialized Societies) .
Equity Ownership
| Holder | Common Shares Beneficially Owned | % of Class | Series A Preferred | % of Class | Series B Preferred | % of Class | Series C Preferred | % of Class |
|---|---|---|---|---|---|---|---|---|
| Kjerstin Hatch | - | - | - | - | - | - | - | - |
Notes:
- Record date shares outstanding: 1,769,284 common (post 1-for-10 reverse split effective Aug 4, 2025) .
Governance Assessment
- Strengths:
- Deep special situations and credit/investment expertise relevant to MKZR’s real estate and structured investing; brings underwriting and valuation discipline .
- High attendance and full engagement across all committees in FY2025 .
- Independent director per Nasdaq criteria despite minority equity tie to Lapis; Board documented independence review .
- Audit, Nominating, and Compensation Committees composed solely of independent directors; Audit Chair designated financial expert .
- Risks / RED FLAGS:
- Ownership alignment: No disclosed common or preferred share ownership; potential “skin-in-the-game” shortfall relative to ownership alignment best practices .
- Interlock potential: 12.5% minority equity interest in Hatch’s firm by an affiliate of the Company’s Investment Adviser; while non-controlling, it creates perceived conflict risk given Hatch’s role on the Compensation Committee overseeing advisor fees .
- Board structure: Non-independent Chair and no Lead Independent Director; governance best practice often favors independent leadership, especially with related-party arrangements .
- Related-party ecosystem: Company maintains advisory/administration agreements with affiliates and entered a $10 million line of credit with an affiliate (10% rate, 2% origination fee) approved by independent directors; emphasizes need for vigilant independent oversight; not specific to Hatch but relevant context .
- Process safeguards:
- Regular executive sessions of independent directors; independent-only committees; formal charters and compliance oversight via CCO and Audit Committee .