Posts by Stephanie McConnon Sarkar

Real estate private equity waterfall

If a private equity’s fund’s financial performance turns out the way the fund managers predicted, they face a second layer of issues to deal with: compensation for the LP (investors) versus compensation for the GP (the fund managers). Real estate private equity funds either share profits on a “deal-by-deal” basis or a “whole fund” basis.…

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Excel dashboards for real estate private equity

Investment analysts, students of real estate, investors, and developers frequently need to present a slew of quantitative information to a third party. This information communicates the viability of a particular investment: what the cash flows and expenses look like, what the returns are, and a host of other investment metrics. This information is most often…

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Acquiring a building with existing leases? Here’s what you need to know about your tenants

Credit analysis is useful when considering the financial strength of tenants and other operating partners. When thoroughly underwriting an retail, office, or industrial property, an analyst may look at these measures to understand the caliber and quality of existing tenants, and therefore, what the future strategy and predicted rental income at the property may be.…

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Open end vs. closed end private equity funds

Open end funds are generally focused on assets that can be freely transferred and are traded on an established trading platform or market. These funds are designed to allow for regular re-calibration of the portfolio to meet the contribution and redemption needs of investors. These funds typically have no specific finite term. Upon committing to…

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Real estate private equity: What it is and how it works

What is real estate private equity? Who are the other major players in real estate? Real estate private equity and other similar fields, defined. Real estate private equity is primarily the business of capital allocation. Private equity funds have capital that they need to invest by purchasing income-producing real estate assets directly. They may also…

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