Private Equity Real Estate just released its ranking of the top 30 real estate private equity fund managers. As I have done in the past, I parsed the list to see which managers are registered with the Securities and Exchange Commission as investment advisers. (Disclosure: my company is on the list.)
|1||The Blackstone Group||Registered|
|2||Morgan Stanley Real Estate Investing||Registered|
|3||Goldman Sachs Real Estate Principal Investment Area||Registered|
|6||The Carlyle Group||Registered|
|7||Lone Star Funds (Hudson Advisors)||Registered|
|8||Beacon Capital Partners||Registered|
|10||LaSalle Investment Management||Registered|
|12||Starwood Capital Group||Registered|
|13||CBRE Global Investors||Registered|
|14||AREA Property Partners||Registered|
|15||Prudential Real Estate Investors||Registered|
|16||TA Associates Realty||Registered|
|17||Angelo, Gordon & Co||Registered|
|20||Bank of America Merrill Lynch Global Principal Investments||Registered|
|23||Brookfield Asset Management||Registered|
|24||Lubert-Adler Real Estate||Registered|
|26||Grove International Partners||Registered|
|30||Walton Street Capital||Registered|
|Other Real Estate Fund Managers||—|
|Citi Property Investors||Registered|
|Lehman Brothers Real Estate Private Equity||Registered|
|KK daVinci Advisers|
|RREEF Alternative Investments||Registered|
It still stands that 28 of the top 30 are 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 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.
- Spring Cleaning from PERE
- Which Real Estate Fund Managers Registered with the SEC?
- 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