So you want to launch a real estate fund? You’ll have to get past the gatekeepers.
One of the biggest?
Townsend.
They advise on $200B+ of institutional capital, and they focus exclusively on real estate.
Recent gatekeeping observations...
Fund pitches reviewed: 2,000+
Approved: 59 (just 2.9%)
JV/platform pitches reviewed: 4,000+
Closed deals: 66 (just 1.6%)
And keep in mind:
These were in low interest rate environments, when capital was easier to raise. Hit rates may be even lower today.
Silver lining?
Townsend’s own pitch to clients is that the industry is consolidating, leaving hundreds of high-quality operators under-capitalized.
Townsend highlights four competitive edges for its clients:
1. Global sourcing + scale-based due diligence
2. Research-driven, theme-oriented investing
3. A cycle-tested, cross-disciplinary IC
4. Flexible capital; strategic, not competitive
In other words:
They’re not just backing the megafunds.
They’re looking for relative value.
So is the bar high?
No question.
But is it closed to new entrants?
Not necessarily.
COMMENTS