At a time when fundraising may be experiencing a slack tide, and capital may prove difficult to effectively deploy, real estate investors and asset managers can truly earn their keep. Now is surely such a time, mandating a considered approach.
The slowdown in direct investment could and should push investors to consider different approaches. All the while, though, they must maintain a prudent approach to risk, vintage and potential returns.
“When fundraising slows, discipline matters even more,” says Charlene Huang, Asia Pacific head of real estate at UBS Unified Global Alternatives. “The way to manage vintage risk is by keeping your pacing steady and using structures that give you flexibility: evergreen funds, secondaries, co-investments.”
Those types of tools allow investors to diversify across timeframes and market conditions, rather than leaning too heavily into any one single vintage, Huang adds. Investors should aim to diversify by type of structur
