In Private Equity Real Estate, Matthew Posthuma Discuses Fund Manager Allocation, and Co-Investments in Real Estate Funds
In an article in Private Equity Real Estate (PERE), real estate funds partner Matthew Posthuma (Chicago) explains that as the pandemic has heightened concerns among institutional investors, an increasing amount of capital has moved to more established fund managers with longer track records.
"We’re going through difficult times, but most institutional investors still need to deploy their capital and they’re putting that money with people they already know, which is accentuating a flight to quality we have seen over the last few years,” Matt said in an interview with PERE. “Consequently, more and more of the capital has been raised by a smaller number of managers, which are larger players.”
Matt also discussed how investor aversion to risk, a product of the ongoing pandemic, has made it harder for first-time funds to raise capital. In response to current market conditions, Matt explained that some managers have sought to give themselves more flexibility by extending their investment period by one or two years.
In a separate article, Matt examines the increasingly popularity of co-investments in the real estate asset class.
Subscriptions are required to access these articles.