New York City $1B+ Multi-Family Office Investor Mandate Interview on Private Equity, Real Estate

TL;DR

A 25-year-old multifamily office based in New York discusses their investment mandate, which includes both liquid and illiquid alternative investments, with a focus on real estate opportunities in the US.

Transcript

Llosa's Richard C Wilson from the family office club I'd say we're doing an investor mandate interview here with Damien welcome Damien thank you pleasure himself and I know you've been a part of the family office Club and involved you know with us for a few years we appreciate you doing this interview so what type of an investor are you to begin wi... Read More

Key Insights

• 🧑‍💼 The multifamily office serves non-US investors from Europe and Latin America.
• 🫗 Their investment mandate includes both liquid and illiquid alternative investments.
• ↩️ Real estate investments have been a focus, offering stability, diversification, and attractive risk-return profiles.
• 🔬 Investing in the US provides advantages for non-US investors, such as exposure to a stable market and reliable legal framework.
• 🤝 The office is interested in real estate deals with income streams or mezzanine components.
• 🤱 Their approach to fees is based on relationships, paying fees for deals they understand and trust.
• 🤗 The office is open to discussing investment opportunities related to real estate, distressed assets, and equity.

Questions & Answers

Q: What is the scope of the multifamily office's investment mandate?

The office's investment mandate includes both liquid and illiquid alternative investments. The liquid portfolio consists of global allocation to managers and different strategies, while the illiquid alternatives focus mainly on real estate investments.

Q: Why does the multifamily office primarily focus on real estate investments?

The office believes that real estate is a compelling and unique asset class that offers favorable risk-return profiles for investors. They have limited exposure to real estate equity and instead focus on investing in real estate at a discount, which provides tax benefits and stable cash flows.

Q: How does the office approach investments in Europe compared to the US?

While the office has made some investments in Europe, their primary focus is on the US. For non-US investors, investing in the US provides diversification and stability, as well as exposure to a less volatile market with a reliable legal framework.

Q: What types of investment managers or strategies is the office currently interested in for 2020?

On the illiquid alternative side, the office has been primarily focused on real estate investments. They are particularly interested in deals that offer income streams or mezzanine components, as these provide reliable returns and attract investor demand.

Summary & Key Takeaways

• The multifamily office is primarily focused on serving non-US investors from Europe and Latin America.

• Their investment mandate includes a liquid portfolio consisting of global allocation to managers and various strategies, as well as illiquid alternatives, with a recent emphasis on real estate.

• The office believes that investing in US real estate provides stability, rule of law, and diversification benefits for their clients.