FIRST PERSON: Kevin Shields of Griffin Capital
March 6, 2018 | Blue Vault
Blue Vault recently had the pleasure of speaking with Kevin Shields, Chairman and CEO of Griffin Capital. In its more than 20-year history, Griffin has reached significant milestones and accomplishments, including the recent announcement that it has more than $10 billion in investor equity capital inflows since January 2012. Today, the firm is ranked as one of the fastest-growing retail asset managers in the alternative investment industry (Source: Robert A. Stanger & Co.).
We asked Kevin about what he thinks has helped Griffin rise to the top of the investment manager ranks.
“Our success comes from our unrelenting commitment to provide superior investment solutions for our clients.”
“Our strength comes from our unrelenting commitment to provide superior investment solutions for our clients.”
People before profits
“Capital formation is not driven by momentum, but by value.”
Kevin deeply believes that investor interests come first. When asked about Griffin reaching the $10 billion milestone, he attributed the success to the company’s unwavering commitment to delivering uncompromised results to investors. “Capital formation is not driven by momentum, but by value,” he says. “We are extremely proud to have brought to market timely investment opportunities whose structures, valuation, pricing transparency, and superior risk-adjusted returns have resonated with investors. These solutions have provided durable, consistent income with lower volatility.”
A responsive strategy
After 20 years in the market, Griffin has had to contend with the same challenges as other investment managers: the implementation of FINRA 15-02, and uncertainty around the Department of Labor fiduciary rule. While Kevin points out that even though the sense of urgency around the DOL ruling has stalled, with the review of the current administration, there are still implicit mandates regarding how investment managers interact with investors, advisors, and broker-dealers going forward.
“The regulatory pronouncements have had a negative impact on equity sales across the industry, but in our view, they are temporary.”
He continued, “The regulatory pronouncements have had a negative impact on equity sales across the industry, but, in our view, they are temporary. Fee compression and better transparency, coupled with investor appetite for alternative investment products, are favorable trends over the long-term.”
“We create investment strategies that are responsive to the needs of investors,” Kevin says. “Our product solutions are in line with our commitment to deliver high-quality investments that investors still desire and need.” Griffin has, therefore, engineered share structures in which dealer manager and asset management fees are lower or nonexistent, while also building in daily NAV pricing and quarterly liquidity.
Griffin Capital’s alternative investment solutions include two groups of complementary products: non-listed real estate investment trusts (REITs) and interval funds in the company’s Institutional Access™ fund family.
Targeted asset offerings
Based on personal experience or buying preferences, investors may feel compelled to own a certain real estate sector. Griffin offers a menu that fits a variety of investor appetites.
The firm’s investment strategies include diversified core real estate and global corporate credit securities, as well as direct real estate ownership in sector-specific portfolios, focused on long-term, single-tenant, net-leased essential office and industrial assets, clinical healthcare properties, and grocery-anchored shopping centers.
For more information about Griffin Capital, visit www.griffincapital.com.
Learn more about Griffin Capital Company on the Blue Vault Sponsor Focus page.