Cadre, the online real estate investment platform, has agreed to a $250 million equity partnership with Goldman Sachs’ private wealth management division, the firms said on Wednesday.
The capital will be deployed alongside commitments from Cadre’s existing investors, which comprise high-net-worth individuals, family offices and small institutions. The firm focuses on deal-by-deal investments in US commercial real estate across property types and targets a double-digit net internal rate of return.
Cadre, founded three years ago by Ryan Williams, an alumnus of both Goldman Sachs’ investment banking division and Blackstone’s real estate business, has closed on about $1 billion of transactions to date. The firm also closed its Series C fundraising round in the summer, valuing the company at $800 million.
“I’m confident Goldman Sachs is thinking about this as just the beginning, both for the capital we’ll raise and potentially for other alternative asset investments over time,” Cadre founder Ryan Williams told PERE. “We’ve had significant demand from multiple banks and investment partners. Our mission, in addition to a focus on quality, is to provide more investors [with] access. I think that will be a natural evolution and extension of our business.”
Goldman Sachs did not respond to requests for comment.
Cadre started discussing a partnership with Goldman Sachs in the spring of 2017, Williams said. The startup has close financial and personnel ties to the investment bank: Goldman Sachs invested in the firm’s Series B round of financing in 2016.
In addition to Williams’ two years working in technology banking, Cadre’s investment committee chair, Mike Fascitelli, previously headed the firm’s real estate investment banking business; Cadre investments co-head Tom Stults started his career at Goldman Sachs; and former Goldman Sachs president Jon Winkelreid has advised the firm.
“That DNA helped get us comfortable,” Williams said, highlighting the partnership as Cadre’s “biggest milestone to date.”
Williams declined to comment on capital deployment from the Goldman Sachs partnership. Cadre’s most recent publicly available transaction was the November joint venture purchase of a suburban office in Orange, California, according to data provider Real Capital Analytics. Cadre partnered with Lincoln Property Company to buy a 324,000 square foot property for $92.5 million.