New Rules for Real Estate Private Equity Funds
On a positive note, the real estate private equity fund business is back! Capital is plentiful for those who can earn it. However, it is sequestered by a new and increasingly challenging environment.
Consider the current climate. Attractive deal flow is mostly scarce in primary and desirable markets. The stock market has set new highs; interest rates are at historical lows. Yet institutional investors must continue pursuing robust risk-adjusted returns in order to sufficiently meet their future obligations, which is again helping them to realize that real estate should be part of their long-term, well diversified portfolio allocation strategy.