
When was the last time you saw a $60B fund manager's pitchbook?
Greystar was recently pitching its most recent value-add vehicle, Greystar Equity Partners XI.
According to an SEC filing, Greystar closed on $1.2B of commitments to the fund over the last 18 months, including $900M closed over the last year. The fund's raise has, to date, fallen short of its $3B goal but stands out in a very challenging fundraising market.
----- FUND STRATEGY -----
Generate competitive value add returns via buy-and-improve (80%) and development (20%) in rental housing executions. Underwrite 1,000 to 1,500 opportunities a year.
----- GREYSTAR PLATFORM -----
-- $250B in properties under operation
-- 740,000 beds managed worldwide
-- $62B AUM
-- 21,300+ staff
----- TRACK RECORD -----
-- GEP I // $31M // 22% Net IRR
-- GEP III // $303M // 21% Net IRR
-- GEP VII // $584M // 20% Net IRR
-- GEP VIII // $725M // 13% Net IRR
-- GEP IX // $1.1B // 14% Net IRR
-- GEP X // $1.6B // 12% Net IRR
GEP II, IV, and X were not included in Greystar's track record because they were non-discretionary, programmatic JVs.
----- PROPOSED TERMS -----
-- $2.5B TO $3.0B targeted raise
-- Greystar to invest 3%
-- 1.5% management fee
-- Performance fee: 20% over 8% with 50/50 catch-up
-- 3-year investment period from initial closing
-- 8-year fund period from initial closing
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