Frank Garcia, the former senior portfolio manager of PGIM Real Estate’s open-ended PRISA fund, has joined Pretium Partners, a New York-based single-family rental specialist, as managing director and head of fund portfolio management, PERE has learned.
This is a newly created position at Pretium, which undertook an official search process before hiring Garcia from the pool of candidates, Josh Pristaw, co-head of real estate at Pretium, told PERE.
The main reason for Garcia’s appointment was to institutionalize some of Pretium’s portfolio management processes, Pristaw said. Part of that thinking is Pretium acknowledging that the market environment is changing and the firm wants to be prepared to grow its $50 billion in assets under management through this period of volatility.
“We’re certainly entering a period of time where active management of real estate portfolios will lead to more differentiated outcomes. If you think about the previous 10 years, a rising tide raised a lot of boats,” Pristaw said. “When we think about where we are going forward, having people that are experienced fiduciaries, risk managers and active portfolio managers, we think that will lead to differentiated outcomes and better returns for our investors.”
The firm manages around 20 investment vehicles spanning joint ventures, separately managed accounts as well as funds, Pristaw said. The firm is currently in the market with five funds, including the fifth iteration of its signature Pretium Single-Family Rental Fund series, according to PERE data.
Garcia will be responsible for managing all of Pretium’s real estate fund vehicles, Pristaw said. George Lane, who was hired last December from Abu Dhabi Investment Authority, will remain responsible for overseeing JVs and SMAs.
The move represents a change from Garcia’s previous fund management responsibilities. Whereas he oversaw one open-ended fund at PGIM Real Estate, he will mostly manage closed-end funds at Pretium. The latter firm, however, does have one open-ended vehicle: the core-plus Pretium Single-Family Rental Fund III, which the firm launched in 2019, per PERE data.
Another area of change is property type focus. PRISA is in the NCREIF Open-Ended Core Diversified index of funds, meaning PGIM Real Estate uses its capital to primarily invest in industrial, multifamily, retail and office properties. Pretium’s real estate focus is single-family rentals exclusively. Pristaw, however, believes Garcia will be able to get up to speed quickly on the sector: “I think Frank is extraordinarily intellectually flexible.”
At PGIM, Garcia is being replaced by Joanna Mulford, as PERE reported last month. Mulford stepped into the role after 25 years at PGIM Real Estate in large part because of a succession plan already in place. Mulford worked closely with Garcia during her time as portfolio manager.