Friday Letter

Investors are writing real estate checks, just not necessarily to funds

Capital allocators’ demand for bespoke vehicles means attracting capital to traditional commingled funds remains tough.

In fundraising, smaller managers will have a harder time bouncing back

This year’s PERE 100 and 200 rankings show an uplift benefiting the biggest managers, with smaller firms yet to play catch up.

Platforms take the spotlight in real estate’s push for operational alpha

Big-ticket deals and a record fundraise underscore institutional appetite for exposure to seasoned operators in specialized sectors.

Could BXDC be the exit data center managers have been waiting for?

The launch of Blackstone’s public REIT targeting hyperscale assets aims to address a looming issue in the red-hot sector.

The public REITs posing a threat to fund managers are limited in number

Listed firms like Digital Realty and Realty Income Trust have found traction with institutions thanks mainly to their unique positions in the market.

The two types of real estate managers are becoming increasingly alike

Private equity firms and investment managers, which traditionally had different risk-return profiles, are converging for one important reason.

Private real estate is seeing a mismatch between sentiment and performance

The asset class is now viewed in a notably more positive light, despite the fact returns have yet to bounce back.

What is the value of a capital adviser?

Chatham Financial’s acquisition of Hodes Weill reflects how the placement agent’s role in private real estate continues to evolve.

Real estate fundraising looks very different without the Big Two

The absence of Blackstone and Brookfield from the market has made way for smaller funds, new manager names and shorter fundraising times.

ABP’s development push is a contrarian play

In investing €1.25bn to build new homes, the Dutch pension fund is becoming an outlier in an increasingly development-shy market.