PE mega funds with real estate focused fund
Which megafunds have real estate groups?
What are some of the best real estate focused groups among these megafunds?
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Literally all of them. And all of them are considered highly respectable places to work. It would just be a matter of your fit with the team
how would the environment of a purely real estate focused PE fund differ from a mega funds RE environment?
BREDS comes to mind. BX real estate debt strategies
Lol, what made you pick just this one BX RE fund to highlight? OP is thinking something more like Carlyle or KKR where RE isn't their mainstay.
https://d16yj43vx3i1f6.cloudfront.net/uploads/sites/14/2014/04/PERE-50-…</a">PERE 50 Rankings (2017)
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?
This would be a primary commitment.
A secondaries fund raises capital with the strategy of buying lp interests on the secondary market (Blackstone has a business unit that does this called Strategic Partners).
So then how would you classify those groups vs the groups that invest deal by deals:
Example: Megafund X
Both are "Real Estate groups", right?
I'm not familiar with any mega funds that invest as LPs into LP Funds that then invest with GP/Sponsors. Typically, its the megafund that invests with the GP/Sponsor.
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.
all of the buyout megafunds have a real estate group except for warburg pincus
Warburg does, but only in China I believe
yup, that's correct, was speaking only within the context of the US
Blackstone, KKR, TPG, Apollo, Carlyle, Oaktree, Bain Capital, Ares, Cerberus, Lone Star and all the big Canadian pension funds / sovereign wealth funds.
any of these groups considered stronger than others?
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.
I don't think Providence has a RE team..?
Wait good catch. I was referring to Benefit Street Partners (RE Debt), but it looks like they got acquired Franklin Templeton in October 2018.
Ares
Anyone have any comments/insight on CBRE Global Investors?
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