Asia-focused real estate funds will continue to attract capital commitments from US pension funds provided GPs keep up regular and transparent communication with them, predicts Michael McCook, an industry consultant and former head of real estate for the California Public Employees' Retirement System.
McCook told delegates at the 2009 PERE Forum: Asia in Hong Kong that 2009 would be “a tough year” in terms of fundraising with “little, very little, new investment in Asia”.
McCook said he polled 12 pension fund managers who have suffered from the denominator effect this year who expected to be able to reassert previous allocation levels next year, however, McCook stressed GPs should be talking to their investors about their existing deals and strategies. They should also ask their LPs about investor liquidity issues, he added.
Click below to hear edited highlights of McCook’s speech.