Did a quick search and nothing came up directly - are there any PERE firms that specifically focus on investments into alternative real estate assets? So instead of your traditional office/multifamily/residential/logistics assets the property type focus would be storage, data-centers, etc.? Or are these sectors too niche that they are embedded within general private equity real estate practices of the large PERE firms?
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Colony Capital recently rebranded as Digital Bridge and is exclusively focused on data centers
Bridge does a lot in "alts", Nuveen is focusing heavily on alts from overall portfolio mngt, as are many of the multi-strategy investment managers.
Really, everyone will shift/tilt this way as the market dictates.... it's an allocation/strategy shift, nothing that requires a firm rebrand or anything. So, expect all to follow suit in various ways as the LPs dictate their desires for such. Normal "rotational" behavior at the portfolio mngt level
I think it’s going to be very hard to google to find funds that focus on ‘alts’ but they are out their. Trying googling to find funds that invest in parking structures, billboards, MHPs, Self Storage, seniors, data centers, cell towers. After you do this, I bet you start seeing a pattern and more funds will pop up on google. Some people may say, but wait self storage (or something else listed) isn’t an alternative asset class, but to many people, it is as it isn’t in the 4 main food groups (residential, retail, office, industrial).
Another word, if you are looking at getting into alts such as self storage or MHPs, be advised that these businesses, as it relates to acquisitions, more so than many other areas of real estate, rely on heavy heavy volume as the price tag is so low. While this sounds okay in theory, this means more deals and more closing and more assets to manage which means more hours and less dependable schedule. On top of that, having a $300MM fund with 10 assets at $30MM each vs a $300MM fund with 30 assets at $10MM each (I’m not using leverage) is very very different. There are firms out there that put 30-40 assets in a $300MM fund and it’s nuts. Also note, the fees are the same for both, but the employees needed to run a 30-40 asset fund vs 10 asset fund is significantly more, but you may not have the fee income to hire more people.
Interesting, never thought about it from a deal size/volume perspective but that makes sense. If you don't mind, can I shoot you a PM with some questions? Don't want to deviate too far on this thread.
Sure
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