Alternatives

With the manager’s real estate arm set to be acquired by Bridgepoint in a $1.4bn deal, CEO Al Rabil says investors’ changing allocation habits are driving a need to scale.

The sector, which represents 20% of the Canadian pension’s total portfolio, has been its only negatively performing asset class since 2023.

The firm has a $3bn target and more rigid sector allocations for Realty Value Fund XII, the first launch in the global series since Angelo Gordon’s acquisition by TPG in 2023.

The California public pension considers building its allocation to niche real estate strategies as it pares down its public REIT exposure.

The manager acquired a non-controlling stake in a US portfolio assembled by public REIT Safehold, which has options to reacquire it after seven years.

As the era of cheap debt fades, investors are relying on income growth, stronger asset selection and more disciplined capital management to drive returns.

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

Andrew Allen, head of investment strategy for Newmark’s debt, equity and structured finance group, on why investors are taking a hybrid approach to the nascent sector.

The Los Angeles-based manager’s over-subscribed seventh flagship opportunistic fund will focus on medical offices as well as senior and student housing.

The open-ended vehicle is the manager’s first sector-specific fund in North America.