Private Equity Real Estate Tips

Private Equity Real Estate Tips for Success

One of the most common requests I receive from readers is to cover private equity real estate in more detail. There is a great deal of information on real estate and private equity but very little on private equity real estate funds. I am working to fill this void so if you have any white papers, articles, videos or personal insight please contact me at Theo@peblogger.com I came across this document on private equity real estate funds. The author, Deloitte, prescribes five areas to focus on to achieve success in private equity real estate.

Attracting capital

• Build and sustain an exceptional investment yield track record.
• Build and maintain an eminent and well-regarded team of advisors, including bankers, accountants, lawyers, and other specialists.
• Obtain access to qualified investors.
• Make sure that satisfied and loyal investors receive timely and effective communications, including financial and tax reports.
• Establish, promote, and protect a brand that exudes quality, skill, and integrity.

Sourcing and qualifying investment opportunities

• Do the right things to make people want to do business with you: Demonstrate that you understand the important issues, you conduct due diligence effectively and efficiently, and you have credibility to close.
• Build an extensive network of joint venture partners who are trustworthy and skillful.

Fund and investment structuring

• Structure investments that are suitable, attractive, and efficient for domestic individuals, tax exempt institutions, and a variety of foreign investor profiles.
• Establish best practice fee structures that align your interests with those of your investors.
• Determine the right degree of leverage on investments and for the fund overall.
• Structure investments to minimize federal, state, and foreign income, and asset & transfer tax costs, thereby providing optimal after-tax yield to investors and you.

Investor reporting and operational excellence

• Develop and operate properties efficiently and effectively.
• Build and retain a skilled team at the advisor level.
• Comply with all financial and tax regulatory matters in a timely fashion.

Exit strategies

• If desired, effectively recycle capital within a fund.
• Correctly gauge ideal timing for closing a fund and starting a new one with the same investor group.

Source

The preceding advice is from Deloitte and is not necessarily suggestions from this website, please see a qualified legal consultant.

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Tags: private equity, real estate, private equity real estate, private equity real estate funds, firms, buyout real estate, private equity funds, real estate funds

Real Estate Private Equity Capital

Private Equity Real Estate Funds Can’t Raise Capital

Fundraising by private equity firms focused in real estate has hit a 5-year low in the second quarter of 2009. The decline reflects nervous investors worrying that real estate values will wii continue to slide. Sixteen funds investing in real estate raised just $8.9 billion, the lowest since the Q3 2004.

Alternative asset research firm Preqin concluded, “With many investors still unable to commit new capital, and with other investors more cautious towards the market following significant write-downs in value for existing investments, fund-raising will remain an extremely challenging task in 2009.”

Fund-raisers have also lowered their targets by $28 billion over the past three months, and in some cases have shelved or abandoned their funds altogether. So far this year, 36 real estate funds have been abandoned or put on hold, compared with 25 funds in all of 2008, the report said.

Funds focused on Europe represented the biggest group in terms of value raised, with five funds raising a total of $5.3 billion. That’s down from 12 funds and $9.2 billion a year earlier. About 3.1 billion euros ($4.32 billion) of that was attributed to the Blackstone Real Estate Partners Europe III, the largest fund to close so far this year, Preqin said. Nine funds focused on the United States raised $3.2 billion, paling in comparison to the 31 funds that raised $17.5 billion in the 2008 second quarter.

Read more…

To read more about Private Equity Real Estate please see Private Equity Real Estate Investment.
For a list of Private Equity Real Estate firms please see Largest Private Equity Real Estate Firms

Tags: private equity real estate firms, private equity real estate, private equity real estate funds, private equity real estate investments, private equity real estate management, real estate buyout funds

Private Equity Real Estate Fund of Funds

Private Equity Real Estate Fund of Funds

Private equity real estate is an emerging area of private equity that has developed successfully this decade especially. These private equity real estate funds use various strategies to create returns from large real estate property investments, mostly through a value-added approach that improves the worth of acquired real estate.

As of the year end of 2006, historical 5-year and 10-year compounded annualized returns of private equity real estate in the United States have been 13.3% and 12.7%. The NCREIF Property Index reveals current returns averaging 8% since 1978. Private equity real estate will likely see changes following the mortgage meltdown, but it is an expanding sector of the private equity industry.

Private equity real estate fund of funds are relatively new to private equity, really becoming well-known in private equity early in the 21st century. The majority of private equity fund of funds managers are located in the United States at 50%, followed by Europe with 43% and only 7% in Asia and other regions. Real estate fund of funds often attract investors because they provide an element of diversification to a portfolio and investors with smaller capital to commit are able to invest in a fund of funds if they are not able to invest in a large hedge fund of private equity fund. If you’d like to learn more about private equity real estate fund of funds, here is the 2008 Private Equity Real Estate Fund of Funds available for purchase.

Here is a list of the largest private equity real estate firms:

1. The Blackstone Group
2. Morgan Stanley Real Estate
3. Tishman Speyer
4. Goldman Sachs Real Estate Principal Investment Area
5. Colony Capital
6. Lehman Brothers Real Estate
7. The Carlyle Group
8. ProLogis
9. Beacon Capital Partners
10. LaSalle Investment Management
11. MGPA
12. AEW
13. Rockpoint Group
14. Apollo Real Estate Advisors
15. CB Richard Ellis Investors
16. RREEF Alternative Investments
17. Grove International Partners
18. Shorenstein Properties
19. The JBG Companies
20. Citigroup Property Investors (CPI) Capital Partners
21. JER Partners
22. Walton Street Capital
23. Heitman
24. Aetos Capital
25. KK daVinci
26. Lubert-Adler
27. Starwood Capital
28. Fortress Investment Group
29. DLJ Real Estate Capital Partners
30. RLJ Development

List via PERE
Permanent Link: Private Equity Real Estate Fund of Funds

Tags: Private equity real estate fund of funds, private equity real estate, real estate private equity, investment in private equity real estate, real estate investment