Separate Accounts vs Equity Fund
Have been reading about a group that does a lot of investing through separate accounts.
My question is - how different is this from investing out of a fund structure alongside an operator? At face value, I see it as no different. You underwrite the deal the same way. You (the Equity Fund or separate account) are not operating the asset, but you stilldecisions to make as you're the majority owner of the asset.
But I'm guessing there is some nuance to this and in some cases you are very hands off. Would you still be involved in leasing decisions, refinancings, capex decisions?
For what it's worth, I saw RCLCO is hiring but I'm not talking about them. I feel like they would be a case where they are pretty hands off on the real estate. They seem more like consultants than actual underwriters. But what about a place like StepStone? I am confused by their business model and what they actually do compared to a regular REPE Fund