To an extent, real estate is being carried along by a gust of demand among global investors for alternative asset classes. As The Carlyle Group’s co-founder David Rubenstein recently confirmed, demand for funds is not quite back to 2007/2008 levels, but there certainly is a shift towards allocations to mainstream private equity, infrastructure and, yes, our beloved asset class: property. He noted that substantially more investors are writing checks between $100 million and $500 million to the firm, which he says is a beneficiary of the alternatives trend. In fact, it raised more than $6.9 billion across such strategies in the second quarter alone.
If that is something of a barometer, PERE returns with wind in its sails to bring you some of the most noteworthy developments in the industry from the summer. Before drawing your attention to some of those, however, let me point out that you have not one but three separate publications this month.
Alongside the main issue are our colorful India Report 2013, where more people are seeing that the glass is half full, and the 2013 Private Equity Real Estate Fund Services Guide. Inside the latter, you will find an account of how Morgan Stanley outsourced the back office of its real estate group to State Street. You also will find the all the latest developments that GPs need to be aware of when it comes to complying with a welter of new regulations.
Returning to the main issue, our September theme is ‘Influence’ and, in keeping with that topic, we have indulged in a spot of stargazing to identify the people having a big impact on the way the industry is twinkling upon the world. Turn to page 34 to see who made the cut (and for complaints from those not on the list, see my email address on the left).
One man that certainly has had an influence, at least in the field of global logistics, is Greg Goodman (even though he didn’t make our Influence list). In our Blueprint interview, beginning on page 24, you can read all about the business he has constructed from scratch, backed by the likes of such heavyweight investors as CIC, ADIA, GIC, CPPIB and APG.
Furthermore, Erik Kolb has been tackling a subject that has given rise to a high-fevered debate: How influential is the US JOBS Act going to be concerning solicitation of investors when raising funds? Some of the answers can be found starting on page 31.
Aside from that, there is the usual diet of analysis from Spain’s distressed market and fund consolidation in Europe to Blackstone’s latest cyclical bet – this time on US multifamily – and CalPER’s apparent love-in with ARA Asset Management.
Between the three publications, there are 100 pages packed with analysis and features this month. If you have a long flight, pack them with you.