Finance based real estate due diligence for your PE fund's needs
Step one in delivering value to a private equity fund is understanding the industry. Because if you don’t understand how a fund will conduct its own real estate due diligence, you can’t possibly add value. And most real estate professionals don’t look at the world through the lens of a PE firm. They don’t get it.
Your fund likely has a predetermined investment strategy (core, core plus, value-add, or opportunistic), and strong geographic and sector preferences. You’ve probably already outlined strict acquisition criteria, a preferred hold period, and most likely even have a target IRR threshold. All this is important, but it frequently leads to tunnel vision. Funds tend to lack creativity and their platform gets stale.
Real estate is illiquid. And the industry is inefficient. And sourcing quality deals is hard. But that creates opportunity. And with a fresh perspective on the marketplace, you can deliver even more value for your limited partners.