Recent announcements by Australian Retirement Trust, which plans to invest $1 billion in and with private real estate operating companies (REOCs) through an external manager, and Switzerland’s Partners Group, which is also doing more platform investing, appear to indicate some investors are pursuing variations of platform investing strategies. Given the tough fundraising environment and the resetting of asset valuations, now may be an auspicious time to consider these investment opportunities.

There are several variations of platform investing. On one end of the spectrum are investments in REOCs with a linear capital structure, where investors back the firm that directly owns and manages assets. On the other end of the spectrum are investments in REOCs that manage investment vehicles with third-party capital. These vehicles, in turn, own real estate assets. There are also hybrids, which include when a strategic investor co-manages the investment vehicles and leads investmen