Real Estate
Our $7+ billion real estate portfolio is strategically crafted to leverage the key macroeconomic factors of the U.S. real estate market, positioning our clients for sustainable long-term growth.
The rise of remote work and business-friendly local governments attracting employers have contributed to steady or increasing demand for more affordably priced suburban apartment communities. We’ve acquired these properties at lower costs relative to their income potential and anticipate strong near-term yield. Additionally, we see significant long-term appreciation potential as demand continues to grow.
The growing demand for more spacious living arrangements has significantly increased the need for single-family rentals (SFRs). This demand has contributed to notable asset price appreciation, a rare occurrence in the real estate sector. By acquiring these homes in bulk directly from homebuilders and leasing them out as stabilized communities, we believe we can secure more competitive pricing—and higher returns—compared to purchasing already completed properties.
A once-in-a-decade lending environment
Over the past 12-18 months, the Federal Reserve has implemented rapid interest rate hikes at unprecedented speeds in an effort to control inflation. This policy shift has disrupted markets, causing widespread dislocations, increased systemic pressure, and the potential for a liquidity crisis, posing risks to the global economy. At the same time, these conditions have converged to create what we view as one of the most compelling opportunities for credit investments in decades.
One of the most important questions that any investor should ask when evaluating a new investment advisor is “how have you performed for your existing clients so far?” With over 387,000 clients pursuing a wide range of objectives, the answer is more nuanced than a single number.
