Disconnect between REPE fund managers and underlying properties
Hey guys
I was thinking about this the other day and was hoping to get some feedback from some of my fellow monkeys (preferably the more qualified/veteran REPE guys out there).
I was wondering how some of these large REPE firms (some of them with billions of dollars under management) keep up to date with how the underlying properties in their portfolio are performing? Surely they cannot have an in depth understanding of each individual properties? I mean, I realize they go on roadshows and have analysts do numerous presentations for them, but surely some of these finance guys get so wrapped up in their excel models that a disconnect/delay occurs between the guys sitting on the investment side and the actual on-the-ground performance and market conditions of the property?
Asset Management..each firm typically has a group dedicated to it. The asset managers are assigned to a certain number of properties/markets, and so are the analysts/associates. Their job is to know those properties (and maintain/create value). Everyone else in the firm usually looks to that group for updates on the specific markets and properties.
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