Putting it together: Dry powder fuels interest in entity-level investing
Entity-level investors have been operating in the background of the commercial real estate sector for the better part of the past two decades. Yet high-profile mega-deals over the past few years, from the likes of Blackstone and Brookfield Asset Management, are bringing more attention and capital to the niche.
Investors are sitting on significant levels of dry powder earmarked for commercial real estate, and they are intrigued by the potential to generate attractive returns and deploy capital at scale. In addition, they are attracted by the ability to leverage entity-level ownership to access a steady pipeline of new investment opportunities. “That is part of the holy grail today for a growing slice of the institutional community that is really looking for co-investments,” says Russell Platt, CEO of London-based Forum Partners. Since it launched in 2002, Forum Partners has invested in more than 80 different private and public real estate companies in 20 countries.