Traditional private equity real estate funds are at a disadvantage in the face of new competitors, new business models, and an abundance of capital. In this episode, David Friedlander and Dror Poleg discuss private equity fund structure, the ways in which technology is undermining the validity of this model, and what fund managers need to do in order to remain competitive.
Table of contents:
00:18 What is Private Equity Real Estate?
00:47 What are the most common strategies?
01:54 Who are the main players in this space?
02:18 Trends that undermine traditional real estate investment
03:18 Understanding the private equity revenue model
03:53 Why are PE funds at risk?
06:15 Why can’t funds develop their own platforms?
08:18 Case study: Blackstone’s Invitation Homes
09:55 Why it’s not easy to replicate
10:50 Examples of Property investors acting as Venture Capitalists
12:25 Tech investments by real estate developers, compared to those of real estate PE funds
15:44 What can traditional PE funds do to remain relevant?
Some of the funds and companies mentioned in this episode: Blackstone, Blackrock, Carlyle, Tishman Speyer, Lone Star Capital, AirBnB, WeWork, Tamarisc, Camber Creek, Fifth Wall, Westfield, Invitation Homes, VTS.
Dislocation is a podcast dedicated to innovation in real estate — exploring technology’s impact on the way in which assets are planned, designed, financed, built, marketed, and operated.