Friday Letter The curve in the road ahead

Attend any private equity real estate conference of late and every delegate will tell you the industry is at an inflection point. The collapse of the credit markets has made most deals difficult to close. Investors are reassessing their portfolios. Many now predict a shakeout of managers as the proverbial chaff is separated from the wheat. And, most importantly perhaps, the geographic focus of many real estate investors, including those using private equity fund structures, is undergoing a fundamental shift.