I want to join a PE firm that focuses primarily on a gentrification strategy because I had my package stolen today and absolutely had it with these neighborhoods. Given the nature of that type of investing, I'm sure it's exceptionally profitable since you're investing into heavily discounted assets, but I'm more interested in the ethics side of the work. I think there's real fulfillment in the work by reducing crime, kicking out the shit, bringing in more quality consumers/residents, bringing business in, increasing city tax revenue + reinvestment and ultimately reviving a previously struggling community really resonates with me. Personally had guns pulled and have witnesses shootouts, and sent Child Protection Services video proof of undeniably ridiculously unsafe enviroment for children where they still shut it down (probably because its so common they gave up). I just think if the current community doesn't want things to change then how can I take initiative and bring people in who do? I also want to help contribute to the deglorification of the hood in pop culture by gentrifing tf out of historic ones. My life will be at peace when I see white women wearing lululemon walk their dogs through O Block and Compton, subsequently irradicating all the street cred there. Any tips to where I can get started? What PE firms do this?
Edit: I was honestly thinking about making my own if none exist since I'm so unbelievably passionate about my city and feel compelled by the higher forces to drive out the shit and bring in the right folk who will treat the place good
Self Bump - Very important to me
Does gentrification also reduce the risk of school/mass shootings? Or does it amplify it?
It reduces the risk of my package being stolen by a crackhead. It also reduces the risk of cars being broken into, shootouts in general, reduces # of 13yr olds carrying glocks, reduces the risk of having bad neighbors (think: Pooh Shiesty/King Von/Lil Durk). Source: I drove 10 blocks into a gentrified part of the hood and it was like the storm finally passed.
If you don't live in a doorman building how do you think you have the experience or skillset required to stand up such a shop? Would you not currently be compensated for said skillset if it existed and therefore not live in a pre-gentrified area?
It does indeed reduce the number of mass shootings.
The majority of school shootings (and "mass shootings" in general) when you actually dig in are by blacks (media just goes wild when it's a white person because muh narratives), so it would lower it. More gentrification = less low income communities = less gangs & crime in general.
Respectfully if there's a stat showing gentfied areas are in any way more dangerous than the hood I'll have to reject whoever found that data and never trust anything they say ever
Have you heard of post gentrification? When white folks get priced out by tech Indians and Asians
Lol this is not a bad thing at all, no need to bring race into it.
i.e constant demand from the white folk to keep gentrifing. Strong growth prospects to future-proofing the viability. what's not to love about this strategy?
Now this is a hilarious position to take. In terms of companies that do this inherently as a strategy, I don't think there are any who would publicly admit to it for probably obvious reasons, but banks or insurance companies that work with banks tend to do this very quietly. I'd suggest looking there.
Sure, but similar to how Private Equity was about building businesses before it got corporatized and moved into other assets in the private markets, I would imagine there has to be a new frontier where instead of building businesses you build whole communities. Using capital raised by a single fund, I'd like to be able to invest into Corporate Private Equity, Growth Equity,, Private Credit, Real Estate Acq & Dev, Infra, Public/Muni Finance that follows the strategy of Gentrifying the area. Instead of fixing a singular business I fix a whole neighborhood. I don't want to get into politics because they are incapable of getting things done and have to deal with the public at large which happens to includes said potentially affected areas.
This sounds awesome
This is actually a pretty sick idea all things considered... and you could negotiate with the municipalities + state governments to get special tax breaks for developing attractive communities that help grow the tax base.
lol i like the idea but if you think the general public already hates rich people, oh boy, can't wait for this to be a thing
I think Starwood had a fund that does sth similar. I don't recall it being a gentrification fund, but I attended one of the earnings a couple years ago and they were focusing on how some of their properties were gentrifying particular localities near Toronto.
I like starwood already, but I figured they only do the RE part of the job. I want something that does it all under 1 (or a few collaborative) funds. Pick a certain area, gentrify tf out of it by aqcuiring/dev properties (RE), building up the infrastructure (infra), funding both large and small businesses to come in (Private Debt/Equity) and funding public goods like parks and police stations and stuff (Muni).
probably the best post as of lately on WSO. funny, true, and against the narrative. full support to OP. I wish I could contribute to the goal.
U can contribute with your dollars when I unveil my gentrification fund in ~10 years. Other PE firms want to pretend they don't do it but I promise you I'm going to wear it on my chest proudly.
This would be awesome
Thanks John C Belfort
Is this a joke? I actually can't tell if this is satire
Kinda but I'd join a gentrification fund in a heartbeat and never look back, if it helps
Not quite what you’re looking for I guess but any EM focused fund worth their salt is investing heavily in things like HNW services, private schools, better housing etc as some entire regions e.g. Botswana are gentrifying/developing quite rapidly
Would Chiraq count as an emerging market?
You forgot another beneift. It rewards hardworking lower income people in those neighborhoods who bought homes.
People who bitch about gentrification are the renters or subsidized. The folks who stashed away money, worked hard for years, and bought a property that they could afford are rewarded.
I think it just hurts younger people more. You can bust your ass till you’re 30 and still not be able to buy a home in Harlem. Gentrification really benefits old people, hard working or not
No, it only hurts renters. If you are an old renter, you are worse off. If you bought when you were younger and are old now prices have gone up, you benefit.
Guess one reason that old people bought in Harlem so long ago when it was really grimey. They couldn't afford anywhere else when they were 30.....see where I'm going with this...
People kinda forget that gentrification is literally inevitable in a community that isn't braindead. Kensington community fixes its Tranq epidemic on its own? Guess what suddenly the area becomes more attractive and market value of properties increase, kicking out the shit which then loops again into property values increasing even more and then community investments and the spiral upwards begins. Simple fucking logic how do people not see the money to be made its literally arbitrage atp we're guaranteed money especially if a corp entity buys + build up the neighborhood
I think this is what Flannery Associates is doing, only with rich tech people.
Reminds me of this thread: Use this one simple trick to find out how boss your fund is: | Wall Street Oasis
OP - Please tell me if you manage to launch this fund. I’m willing to put my entire generational wealth (wedding budget too) on the line to become an LP. This idea is a banger.
King regards
LP investing with a small RE company with this strategy might be a good starting point. Tons of smaller companies with this focus
This post makes alot of sense to me, thanks!
earn more and move to a better neighbourhood?
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