Hello my fellow monkeys,
I am interviewing in ca couple of days with a value fund who invests indirectly in non-listed real estate funds (I know these are not REITs, since they are not listed).
My question is how the fund manager would value these non-listed funds? Would you still look at NAV, cap rates, or would look at the individual properties in the funds?
Perhaps the valuation methods are similar to REITs, but I thought I would ask the wise people on this great forum.
| +82 | LP coming into deal at higher land basis. How to model returns to GP? | 18 | 22h | |
| +76 | Increasing RE Industry's Cash Compensation, Collectively | 43 | 22h | |
| +73 | Major Decisions | 13 | 1d | |
| +28 | Niche down to an operator or stay an allocator | 9 | 3d | |
| +24 | Breaking into CRE late 20s | 7 | 4d | |
| +23 | Thoughts on joining an early-stage REPE fund | 7 | 21h | |
| +22 | Self Storage ECRI | 9 | 3d | |
| +20 | Doom Loop or Creative Urban Reemergence? | 3 | 6d | |
| +19 | How to get good at RE Modelling? | 16 | 11h | |
| +18 | 3 Hour Condo/Rental Excel Test - What Can Be Expected | 2 | 4d |
Career Resources
Get instant access to lessons taught by experienced private equity pros and bulge bracket investment bankers including financial statement modeling, DCF, M&A, LBO, Comps and Excel Modeling.
You can have unlisted reits...
If you're talking about a fund of funds job, where you're "investing in real estate FUNDS" as you say, you won't be valuing anything whatsoever in that job.
If you're talking about nontraded REITs, then it would be valued the same as any REIT.
So, which is it?
Interesting.
It is investing in real estate funds, so yes it is a funds-of-funds gig. Wouldn’t you be interested in the underlying assets in the funds you are investing in?
@"prospie" Thank you for your comment, I think I was going down the wrong path there for a moment.
I called a friend who used to work in a fund-of-fund, and he explained the basics of how you value funds. Basically you look at metrics like returns, correlations, max drawdown, style, volatility of returns etc. There is nothing wrong with understanding the underlying assets in the funds, but it is not where the main part of the work will be. Or correct me if I am wrong here?
I believe I ended up answering my own question here, after being put on the right path. I believe I might be more interested in being closer to the risk taking and the assets than what a fund-of-funds job will give me.
Does anyone then have any insights of how valuable the experience from a fund-of-fund, will be in pursing a job in a fund doing direct investments?
Tempora et esse quas odio. Aperiam laudantium praesentium eius laboriosam. Nisi officiis autem vero dolor ut ut ut. Ut sequi omnis nostrum quod possimus libero. Atque doloremque laborum itaque voluptas cupiditate eum quae est. Hic doloremque molestiae porro. Recusandae voluptatem aut qui et rem eveniet animi.
Laudantium earum a maxime dolor ut quibusdam et. Tempore corporis dolor sit reprehenderit libero ut voluptatem.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...