To read this full article you need to be subscribed to Institutional Real Estate Americas
Equitable Terms: A Principle Worth Defending as Funds Proliferate
The number of private equity real estate funds pursuing opportunistic returns amid the fallout from the credit crunch continues to grow rapidly. In a recent position paper, fund of funds manager Clerestory Capital Partners argues that “equitable terms” for all investors is a principle worth defending.
“The results of our recent market survey clearly show that the proliferation of funds pursuing higher-returning investment strategies is continuing,” says Joanne Douvas, principal and co-founder of Clerestory. “But we also sense that the velocity of capital-raising has decreased significantly. This convinces us that the principle of equality of terms among investors in funds is even more crucial now, as we believe it leads to a more efficient management process, a better product, a higher-quality investor base and, ultimately, better performance,” she adds.
Clerestory’s latest research shows 128 small cap opportunistic funds in the market in first quarter 20