Regions

CalSTRS’ head of private markets pushed for big changes during his 20-plus years at one of the world’s largest property investors. He is not done pushing yet.

Pollack will be joining the firm at a time when alternative lenders are expected to be able to significantly increase their market share.

The Dallas-based manager closed the 10th fund in its flagship value-add series on $3.1bn, a 35% increase on the previous fund.

Investors may be amenable to investment period extensions in today’s climate, but lengthening the fund term could have more serious implications.

Banks’ commercial real estate loan loss provisions and managers’ cash reserves are under the microscope. But calls for prudence are too little, too late.

Most assets need an additional 15-20% in reserves to address refinancing issues, according to the advisory firm’s co-founder.

In a highly illiquid private real estate market, investors will need to get comfortable with longer deployment periods – and managers will need to contain any adverse impact.

Ares Management data shows deal volume for the asset class fell 21% in 2023 from the record $12.4bn clocked the year prior.