Pfäffikon/SZ, December 18, Real Estate Co-Investments
Over the last years co-investment solutions have revolutionized the way family offices and institutional clients allocate capital into real estate. The paper discusses the rise of real estate co-investments.
· Partial-ownership transactions have represented between 6.3% and 9.5% of total real estate transactions with an average volume of roughly $36bn
· Co-Investment returns tend to outperform fund returns as studies from private equity markets illustrate
· There is no common definition of the various co-investment solution terms. While some investors reduce defining criteria to only the number of participating investors, others include characteristics, such as alignment of interest via equity participation, control rights, holding structure, operating mechanisms, investment policy or the regulatory framework to define the respective co-investment solution.
· Co-Investments are generally either titled as joint ventures, club deals or sidecar investments in funds.
· Investors regard access to attractive deals, alignment of interest and the efficient deployment of capital as some of many advantages of co-investment solutions.
Download Paper: Co-investment Evolution