"Why do you invest in ____ ?"
This pension fund expects to make 3-6x $100-150M investments this year and included a great overview of their favorite investment structures.
To get a better sense of the "why" behind each structure, we asked investors to summarize what they like about each in a few words...
---- Separate Accounts ----
Control
Direct say in deals
Custom strategy
Cheap
---- Open-End Funds ----
Coupon clippers
Core exposure
Index plays
Diversified
Set it and forget it
Quarterly liquidity (in theory)
---- Closed-End Funds ----
Targeted
Juice
Higher returns (when it works)
Lock ups
Big fees
Talent
More about the manager than the deals
---- Co-Investments ----
Strategic scraps
No fees or close to it
Only do it with managers we trust
Unpredictable sourcing
---- REITs ----
Liquid
Cheap
Correlated
PS – You can’t raise capital if you don’t understand where it comes from. That’s why we kick off every FastTrack cohort with a deep dive into capital markets, key players, and how real estate capital is structured. Next cohort starts this week. DM us to join.
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