CRE Opinion: The Irresistible Rise of Private Equity Real Estate
Private equity real estate can deliver a tangible financial return—and preserve capital—even in today’s yield-starved market.
February 28, 2017 | by ARI RASTEGAR | DMagazine
For high net worth investors, these are extraordinary times impacted by disruptive changes to the regulatory and political landscape. Today, CEOs, doctors, attorneys, and other sophisticated investors are exploring new ways to preserve and grow their capital, including adjusting their asset allocations and making strategic moves into alternative investments. In many cases this means getting out of hedge funds and into private equity. In this brave new world, I believe that private equity real estate is worth strong consideration.
Private equity real estate can deliver a tangible financial return—and preserve capital—even in today’s yield-starved market. If all else goes wrong, and barring war or a major global disaster, property will continue to exist long after fiat paper money and other traditional investments have imploded or even vanished (anyone for Lehman Brothers, The Royal Bank of Scotland, or Lloyds Bank).
The first step in defining a concept such as private equity real estate investment, that might be unfamiliar to some, can often be to explain what it is not. Private equity real estate investment is not to be confused with investing in a publicly traded, or non-traded, REIT (real estate investment trust) vehicle, the most commonly used real estate investment product.
