Private equity real estate funds: unlocking opportunities

Abstract

Private equity real estate (PERE) refers to a specific type of private equity (PE) fund that invests in real estate. Although PERE derives its structure and functioning from generic PE, it has its idiosyncrasies. PERE funds aggregate capital from limited partners (LPs) to offer capital as equity, senior debt, or mezzanine debt to real estate development projects, asset/portfolio acquisition, real estate firms, or other PERE funds. The debt may take the forms of convertible or non-convertible debentures (NCD) or shorter-term construction financing. The locations of the fund manager, or fund incorporation, and of the target assets are matters of strategic concern to PERE.