Pension funds looking to make some big moves by acquiring an ownership stake in real estate operating companies (REOCs) could find more opportunities ahead in the coming year.
More operating companies may be in the market looking for a capital partner to finance growth, monetize their existing equity or align with a big brand that can help open up new fundraising channels. “Global real estate fundraising environment is at a 15-year low, and it’s extremely challenging to garner capital. Hence, a lot of operating companies that historically have been against taking in capital at the platform level are much more willing today to visit that conversation,” says Michael Yang, a senior managing director and head of secondaries and liquidity solutions at CBRE.
Quantifying pension fund investment into operating companies is not an easy task, due to investments that often fly below the radar with capital flowing through investment managers. However, enterprise-level invest
