Trending Content - Real Estate Forum
| +59 | Long Game: Development vs Asset Management | 22 | 16h |
| +28 | Future of Multifamily | 15 | 1d |
| +22 | CRE Banking @ Top 3 Bank or Asset Management at Public REIT | 13 | 4d |
| +22 | No IB RO considering RE | 9 | 1d |
| +19 | Most Correct Way to Grow Rents in MF Development Underwriting | 4 | 2d |
| +18 | Brokerage/RE Market | 1 | 17h |
| +18 | PGIM investment analyst low pay | 16 | 23h |
| +18 | Midweek timing of resignation? | 13 | 13h |
| +15 | Reneging MBB Offer to search for CRE job? | 9 | 23h |
| +13 | RE megafund sophomore insights programs (Blackstone, Starwood, TPG) - how to approach these? | 4 | 30m |
Career Resources
$50M is very small. I’d say anything over $400M if equity is decently sized. That’ll lever up to $1BN at 60% LTV, and if you get a couple funds that size in series, at various points of the fund life cycle, then you can see a decent AUM. Anything smaller than $100M and it becomes difficult to justify the formation and admin costs.
Depends on what the purpose of the fund is. Trunk Yeti seems to be thinking of a large institution raising money. And in that case he's correct.
But if you are a smaller player who is hyper-focused on a single asset class in a single region, it can make sense to go smaller. Buying mid-size MF in Tennessee? $75mm can make sense, because you're not going to compete with big national players to write a $3-5mm checks. Someone running a $750mm fund can't afford to be writing a check that small.
Does whether its a GP fund that can JV their equity with LPs vs being strictly an LP capital allocator change the answer to the question at all?
Mollitia qui numquam ad officiis tempore veniam labore. Iure itaque aspernatur similique molestiae.
Et quasi reprehenderit sit facere dolorum ut dolores. Totam expedita soluta molestiae quo.
Autem repudiandae dolores accusantium accusantium saepe natus cumque. Magnam tempora quo voluptatem qui soluta est. Magni quia explicabo ut facere.
Earum voluptatem consequatur mollitia. Voluptates consequatur expedita modi in facilis. Voluptas ea perspiciatis et labore. Sed repudiandae eum pariatur et. Magnam quia ut ut rem officiis dolores praesentium. Eius repellat tempora voluptas aliquam sed.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...