Interest in real estate private equity has skyrocketed over the past two decades, and it has become a preferred institutional choice for exposure to this asset class. The real estate private equity sector is generally divided into four main categories, with perceived risk and corresponding return potential increasing along the spectrum from Core to Core-plus to Value-added to Opportunistic strategies.
Benefits of Real Estate Private Equity Investing
- Long-term nature allows for a patient approach and may smooth volatility of returns
- Attractive structure for gaining exposure to the asset class over time
- Ability to diversify across strategies, geographies and managers
- Largely uncorrelated with fluctuations in public equity markets
Our global real estate program is anchored on a private markets platform that invests with leading real estate fund managers with whom we have close and longstanding relationships. We focus our real estate activities on value-added, recovery and transitional asset management and, on an opportunistic basis, complement our primary fund portfolios with secondary transactions and co-investments. We manage different programs for investors seeking risk/reward objectives along the spectrum from Core-plus to Opportunistic.
Since making our first private real estate fund investment in 2002, we’ve learned that timing the real estate asset class is extremely difficult. Accordingly, we utilize a mix of rigorous due diligence, market research and broad portfolio diversification to help mitigate risk while building our primary, secondary and co-investment exposures. These efforts are best guided by a “Buy Well, Manage Well, Structure Well” philosophy. Key characteristics of our global real estate investing approach include the following:
- Theme- and Cycle-based: We tailor sector exposure based on strategic trends driving global real estate, including technology, e-commerce, urbanization and demographic shifts.
- Diversified Exposure: We offer diversification across strategies, geographies, managers, structures and vintage years, and our portfolios include primary real estate funds, secondaries and co-investments
- Customizable Structure: We allow investors to choose specific allocations to various segments or select a model portfolio reflecting our recommended strategy mix based on current market conditions.
- Leverages our proprietary platform: We source opportunities from longstanding relationships with 200+ general partners across the private real estate landscape.
- Dedicated Team: Portfolio Advisors has a strong global real estate team with an average of 16 years in the sector and aggregate investing experience of more than $2 billion in capital commitments worldwide across 70+ sponsor relationships.