Rigorous screening, thoughtful structuring, and active management

Portfolio Construction

Seeking to achieve attractive risk-adjusted returns across market cycles

Our portfolios are constructed with the objective of achieving attractive risk-adjusted returns across market cycles. We build portfolios that are diversified by manager, region, and sector.*

Our investment process begins with an analysis of trends affecting overall real estate values combined with an informed understanding of individual managers, markets, and product types.

We construct portfolios in accordance with our diversification guidelines and other client preferences. The weight given to each underlying investment takes into account the investment strategy of the fund or mandate, the proven experience of the manager and how the particular investment focus complements the rest of the portfolio. In addition to primary underlying fund positions, our portfolios include secondary purchases of fund interests and co-investments in specific transactions.

While our portfolios generally target investments sponsored by established fund managers with long investment histories, we will also consider investments with “emerging managers”. In our case, this generally means established teams with underwriteable track records who have previously raised capital in other formats but are raising their first standalone or institutional funds. We further believe that these investments can offer attractive returns because emerging managers often debut at a small fund size that allows them to be extremely selective in asset selection, and they are eager to prove themselves.  

We provide investment management solutions that allow clients to access a diversified selection of real estate managers through commingled (multi-investor) funds or customized programs created to complement an investor’s existing portfolio and/or to help meet their need for exposure to a particular asset class or geography.

 

* Diversification does not eliminate the risk of loss.