Real Estate Private Equity Investment Strategy

Question

Been following the real estate industry for a while. Which REPE funds do both corporate and asset-level investments? Also, is there any fund that invests in both equity and debt? Thanks!

redever · Accepted Answer

The whole key to REPE 'strategy' as it is considered, is to be be nimble and somewhat unconstrained. This is a function of a firm's ability to raise capital. BX more or less gets to do what it wants and will jump from office bldgs to SFHs to industrial or whatever as it did last 15 years. So, I think your question implies a premise that doesn't really exist.

That said, some firms have teams and expertise that focus on certain asset types and/or transaction types, so they tend to be bounded by their expertise.

SHB · Answer

Large companies will do both but under different ultimate funds. The equity sources for debt vs equity or corporate vs assets are different so rarely would you have a fund of any meaningful size raised to do both.

There are obviously "exceptions that prove the rule" one example would be pref equity/mezz debt people. Often these guys are playing within the same risk spectrum (and have similar equity sources) and often do both although most have either a pref equity or mezz bent as the pref equity guy usually has development/operational experience.

vintagegmt · Answer

Goldman 1st/2nd year analysts work on both debt and equity investments. Additionally, since the firm also invests off of its balance sheet in deals (separate from their commingled funds) they do both corporate and entity level investments. For example, look at the iQ student housing deal was a perfect example of both corporate and entity level investments.

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Real Estate Private Equity Investment Strategy

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