Hijacking this thread with a side question:

Let's take a group like KKR. KKR parters with GP/Sponsors on a deal by deal basis signing $25mm-$50mm equity checks per deal (just guessing).

What is it called when a group like KKR invests $200mm in an LP fund that partners with GP/Sponsors on a deal by deal basis? Is that called a secondaries fund?

 
Most Helpful

Sure, they're both investing in real estate. One is just investing on a direct JV equity basis (Group B), and one on an indirect / primary basis (Group A).

Example of how this generally works:

Random Pension Fund / Sovereign Wealth Fund / HNW / Fund of Funds (Group A) makes an LP investment (also referred to as a commitment) into Oaktree / Blackstone / KKR's real estate focused fund (Group B). These groups then invest directly in deals with real estate operators / sponsors. Note that in this instance, the Oaktree / Blackstone / KKR type group is the GP of their real estate focused fund.

 

Group A is true Real Estate Private Equity in my mind, this is a firm investing in a company that invest in real estate.

Group B would be a fund that invest in Real Estate or a Real Estate Fund.

The difference is one has mortgages and property, the other has an equity share in a company that invest in real estate. This isn't a hard science this is more of how I would classify them.

Now when it comes to naming the team or if you want to be able to google a team and see which one they are, I have seen a few key words stick out. One example is a "Special Situations" RE fund is a term that would typically put the RE fund into group A for example.

 

Blackstone, KKR, TPG, Apollo, Carlyle, Oaktree, Bain Capital, Ares, Cerberus, Lone Star and all the big Canadian pension funds / sovereign wealth funds.

Robert Clayton Dean: What is happening? Brill: I blew up the building. Robert Clayton Dean: Why? Brill: Because you made a phone call.
 
  • BX all over the place in RE and across the different verticals of BREP, BREDS, BTO etc,...

  • Apollo, Lone Star and Cerberus (talking Europe here) mainly focus on NPL secured by RE, instead of doing direct buyouts.

  • Bain is big in NPLs and just recently built a dedicated REPE team.

  • Carlyle struggled a lot and reshuffled their RE team a couple of years ago.

  • At least in Europe KKR does a lot of JVs and some interesting development stuff.

 

Wait good catch. I was referring to Benefit Street Partners (RE Debt), but it looks like they got acquired Franklin Templeton in October 2018.

Robert Clayton Dean: What is happening? Brill: I blew up the building. Robert Clayton Dean: Why? Brill: Because you made a phone call.
 

Ut quis iusto laborum et. Velit magni sunt consequatur consectetur. Ut eum quidem maiores et mollitia. Et vel quo fugit aliquam debitis.

Sed laboriosam aut voluptate. Molestiae commodi fugit est voluptatem qui nostrum expedita. Consequuntur occaecati architecto ea beatae sequi et. Repellat qui in maiores consequuntur et. Quo at ea cupiditate quas voluptatem. Quia numquam reprehenderit culpa delectus. Neque placeat deserunt placeat non.

Career Advancement Opportunities

March 2024 Investment Banking

  • Jefferies & Company 02 99.4%
  • Goldman Sachs 19 98.8%
  • Harris Williams & Co. (++) 98.3%
  • Lazard Freres 02 97.7%
  • JPMorgan Chase 03 97.1%

Overall Employee Satisfaction

March 2024 Investment Banking

  • Harris Williams & Co. 18 99.4%
  • JPMorgan Chase 10 98.8%
  • Lazard Freres 05 98.3%
  • Morgan Stanley 07 97.7%
  • William Blair 03 97.1%

Professional Growth Opportunities

March 2024 Investment Banking

  • Lazard Freres 01 99.4%
  • Jefferies & Company 02 98.8%
  • Goldman Sachs 17 98.3%
  • Moelis & Company 07 97.7%
  • JPMorgan Chase 05 97.1%

Total Avg Compensation

March 2024 Investment Banking

  • Director/MD (5) $648
  • Vice President (19) $385
  • Associates (85) $262
  • 3rd+ Year Analyst (13) $181
  • Intern/Summer Associate (33) $170
  • 2nd Year Analyst (65) $168
  • 1st Year Analyst (198) $159
  • Intern/Summer Analyst (144) $101
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

Leaderboard

success
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”