Extremely wide mandate fund
Which repe funds have you seen with the broadest mandate or no mandate whatsoever other than needing to hit whatever their target pref and near their target returns are? I’m talking any asset class, any geography, anywhere in the capital stack, any strategy, public or private?
Since I have access to the Green Street Real Estate Alert HY fund database (and apparently bored on a Sunday), I logged in and searched for active funds using the screening criteria "Opportunity" for fund type and "Diverse" for asset class. To be clear, no idea of any of these funds would actually have as wide a mandate as you are asking (especially when you mix "public" in the list), but I've heard that the fund docs are often pretty unrestricted for bigger names that have the clout to get away with anything (essentially Blackstone is who I am referring to, but beyond me to know how true this is or what it means in practicality.
Here is a sampling of the results.... (roughly largest to smallest, ignoring funds from an operators once they make it on list)
Blackstone Real Estate Partners 9
Brookfield Strategic Real Estate Partners 3
Starwood Opportunity Fund 11 Global
Carlyle Realty Partners 8
TPG Real Estate Partners 3
Secured Capital Real Estate Partners 7 (PAG Real Estate)
North Haven Real Estate Fund 9 Global (Morgan Stanley)
Rockpoint Real Estate Fund 6
KKR Real Estate Partners Americas 2
There are tons more, but that's enough for now! Get a different list when I switch to "Value-Add", but same idea. In reality, it's just a matter of what these operators can convince their LPs they should allowed to do when fund raising. Clearly, in an SMA the LP can specify anything they want/don't want.
I think this is a hard topic to answer without actually seeing fund docs. Have worked on entity level deals and whenever we bring them to Carlyle’s RE fund they say can’t do entity level deals. They do have a separate fund in NYC that looks at real estate entity level deals although it’s not specifically a RE fund. Same with their RE debt deals - have brought them large RE portfolio financings and it basically goes to their LevFin fund as opposed to the RE fund.
Very true, and to be clear, I am not implying these funds can do "anything", fund docs govern. Free form is usually disadvantageous to raising large amounts of capital, but the big PE names tend to have the credibility to get away with more "random" moves than others. Such as venturing into Single Family Homes after the 08 GFC for example, not something that funds other than the Blackstone and Starwood types would likely have been able to do within existing structures.
To the OP, I should add that most major investment managers (like PGIM, CBRE GI, etc.) will often chose to create "specialty" funds (like Seniors Housing Fund X) as it has better fund raising advantage; meaning they can get bigger overall investment $$$ from each LP (like CalPERS) with multiple, distinct strategy funds as this is how the investment managers/allocators generally prefer to invest.
The large field "opportunity" fund model has become more of specialized, multi-fund options (like ordering off a menu) as real estate allocations are so much larger now than decades before. BX, SW, KKR still like using the large open-strategy, high-yield target model as it better fits with their overall PE business model and LPs still like investing in those funds (prior results lead to hopefulness of future returns).
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