How to Invest as HNW LP with Hines, Tishman, Brookfield, etc.
How do major developers raise LP money from high net worth individuals?
I’ve looked at some of their websites and they don’t provide information on how to invest. Do they even accept investments from HNW that may be as low as $1 million? If you’re investing that little, do you need to know executives at the firm, essentially?
Regarding Hines, I read that they only raise HNW money through specific financial advisors, does anyone have any insight into this and who those advisors are?
I can’t find any good information online for how to invest in any alternative investments including VC, PE or REPE. I suppose you have to have a financial advisor or be ultra high net worth.
If you have to ask you can't afford it
Ha too true
If you are only able to invest $1 million, those firms will direct you to their public vehicles. They may do private placements, but I'd doubt they will want to take a $1 million ticket directly but some broker-dealers might have a syndicated club offering. Either way, you will need to go through a broker-dealer, no way will they touch you directly being non-institutional (need $25 million in qualified assets to meet that test, and even if that is available, the regulatory risk of dealing with any "individual" makes it not worth it most of the time). Since most of those firms you name are likely to be over-subscribed, they really have no reason to take a $1 million dollar order when they are probably saying no to requests of big name institutional investors.
How would you find a broker dealer who puts the money together for these deals? Any leads on this?
And with just, say, $1 million in equity, is there even anything to buy where you’d get commercial real estate type of returns with 8-12% cash on cash and maybe a 12% IRR if you’re buying a core/core-plus asset? As far as I can tell, if you’re at this low end the numbers just don’t really work.
I mean, I would start with the brokerages/wealth managers you have accounts or relationships with, see if they handle alternative investments and/or have a private placement desk.
You can hang around/join/follow the conferences for family offices, I'd think those networks would swim with those types. The ADISA organization is where a lot of the major sponsors go as do the big broker-dealers who sell such securities.
I used to work in that world (on the sponsor/buyside), but not directly with the BDs, so I really don't know them directly and its been years so I don't want to try and remember random names.
i've bumped into many placement agents at PREA meetings, that's very institutional capital centric but I'd guess you can find private placement BDs there as well.
I guess the bottom line is, if your the investor, you are then the client, so these people should find you!
Thanks, appreciate the info definitely gave me some leads to follow up on.
Hope it helps.
As you to your return questions, 8-12% cash on cash is very high for a current return. I suppose some debt funds might generate yields like that via fund leverage, still for that to be a distribution yield net of fees/promotes would be impressive (8% a lot easier than 12%). Still good amount of risk in fund leverage would be needed.
12% for core/core-plus also aggressive, maybe doable via fund leverage (of core plus/value add), but they you don't really have a core/core-plus profile.
I get Real Estate Alert (that is a publication you can get to see the full database of high-yield funds in the marketplace, might be worth you subscribing if serious, I think it costs like $4k a year or something like that), they had an article and most HY funds in market are targeting 14-16% IRR if I recall for opportunistic/value-add. So you can balance down for core/core-plus from that.
Here is the prospectus for the Hines global reit. You would have to buy through a broker, though at the bottom is a some contact numbers if you call they may be able to give you a list of brokers that sell shares.
https://www.hinesglobalincometrust.com/portfolio-summary
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