Last year, I looked a the top 30 real estate private equity fund managers to see which were registered with the Securities and Exchange Commission. Given that we just passed the March 30, 2012 registration deadline, I thought I would update the list. (Disclosure: my company is on the list.)
|1||The Blackstone Group||Already registered|
|2||Morgan Stanley Real Estate Investing||Already registered|
|4||Colony Capital||Already registered|
|5||Goldman Sachs Real Estate Principal Investment Area||Already registered|
|6||Beacon Capital Partners||Registered|
|7||LaSalle Investment Management||Already registered|
|8||The Carlyle Group||Already registered|
|9||Prudential Real Estate Investors||Already registered|
|10||Lone Star Funds||Already registered|
|12||AREA Property Partners||Registered|
|14||KK daVinci Advisors|
|15||CB Richard Ellis Investors||Already registered|
|18||Lubert-Adler Real Estate||Already registered|
|19||Citi Property Investors||Already registered|
|20||Walton Street Capital||Already registered|
|21||Starwood Capital Group||Already registered|
|22||Bank of America Merrill Lynch Global Principal Investments||Already registered|
|23||TA Associates Realty||Already registered|
|25||Lehman Brothers Real Estate Private Equity||Already registered|
|27||Aetos Capital||Already registered|
|28||Angelo, Gordon & Co||Already registered|
|30||Grove International Partners||Registered|
|Other real estate fund managers|
|RREEF Alternative Investments||Already registered|
If you do the math, now 28 of the top 30 are now registered with the SEC as Investment Advisers.
There are good arguments to be made on both sides of the registration debate for real estate funds. The core requirement under the Investment Advisers Act is that the manager is giving investment advice about securities. Most of these real estate fund managers are truly focused on real estate and not securities. However, the discussion between what is and is not a real estate security may be fun for the first week of your securities law class in law school. It’s not a fun discussion when trying to comply with regulatory requirements.
The PERE 30 measures capital raised for direct real estate investment through commingled vehicles, together with co-investment capital, over the past five years.
- PERE 30 (.pdf) PERE’s Ranking of the 30 largest private equity firms in the world
- Which Real Estate Fund Managers are Registered with the SEC?
- Is a fund manager is an investment adviser? – prior post on Compliance Building
- Is real estate is a security? – prior post on Compliance Building