At my firm, we’re occasionally approached by capital partners who ask us to prepare budgets and step in as third-party operators without taking any equity in the deal.
I'm curious on how common this setup is across the industry? When there's no ownership stake and minimal deal structuring involved, should this responsibility fall under the acquisitions/investments team or the asset management/budgeting team?
It’s not the most exciting work since there’s little to no dealmaking, but we get asked fairly often due to our strong reputation as an operator.
Sounds like a pretty standard property management/asset management operation if you ask me.
If you’re not an owner, there’s nothing to acquire or invest in.
To clarify, on true acquisition deals, we typically operate the asset and contribute a GP co-invest alongside the capital partner. Whereas, with these management takeover situations, the partner just wants us to operate the asset—no equity or deal structuring.
So my question is more about who should own the process internally (or what is commonly done across the industry). Should these management takeovers sit with the acquisitions team since we're mostly sourcing the opportunity, or should they be handed off entirely to the asset management/budgeting team.
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