Future of fees; changes to real estate fund structuring

Withum’s Tom Angell discusses the future of fees and expenses at this year’s CFO & COOs Forum; how covid-19 has changed real estate fund structuring

Video: Withum’s Tom Angell talks about fees and expenses, breaking down how they’ve evolved, where they’re going, how the balance of power between LPs and GPs has shifted and more.

Fund structuring: Private real estate managers have had to get creative with their fund structures. Firms that were in the middle of fundraising campaigns when covid-19 hit, especially those that started deploying capital, have a valuation problem to solve, sister title PERE finds. Properties bought pre-pandemic are viewed as overvalued, so prospective new investors are resisting traditional true up practices. Existing investors, meanwhile, are reluctant to carry the load of these tainted assets alone, resulting in a log jam that managers must address to get fundraising back on track.

Email prepared by Graham Bippart and Adam Le