In PERE, Asset Management Partner Matt Posthuma Discusses Fundraising in a Downturn
Insights from asset management partner Matt Posthuma are included in a PERE article published on Nov. 4 regarding preparations firms are making to secure their real estate funds in the event of an economic downturn. The piece further examines seven ways firms are fundraising to prepare for such an event.
One method that firms are using to prepare for an economic slowdown involves raising funds with longer investment periods. “Longer investment periods offer managers more flexibility to make investments at lower prices should a downturn occur. Conversely, however, this potentially creates more risk for the investor,” Mr. Posthuma says. “From the investors’ perspective, if there’s a longer investment period, they have to keep that capital ready to go for a longer period of time.”