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Concepts

June 4, 2024

6 min read

Evaluating a Sponsor for Limited Partner Investment

When it comes to investing in real estate as a limited partner (LP), one of...

Assessing Past Performance

A sponsor's track record is a testament to their ability to manage and complete real estate projects successfully. When evaluating a sponsor, consider:

  • Past Projects: Look at the number, type, and scale of projects they have managed. Successful handling of projects similar to the one you're considering is a good indicator.
  • Performance Metrics: Evaluate their past projects' financial performance, including return on investment (ROI), internal rate of return (IRR), and equity multiple.

Industry Experience

  • Experience Duration: Consider how long the sponsor has been active in the real estate industry. Long-standing experience often correlates with a better understanding of market dynamics.
  • Market Expertise: Assess their knowledge of the specific real estate market where the property is located.

Trending

February 7, 2023

7 min video

Introduction to Private Equity Real Estate

Private equity real estate (PERE) is an alternative investment that continues...

Private equity real estate (PERE) is an alternative investment that continues to captivate the interest of investors worldwide for its historical performance and place it fills in a successful portfolio. It involves pooling capital from various investors to directly invest in real estate properties or real estate-related companies.

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