Frequently Asked Questions
WHAT ARE PRIVATE PLACEMENTS?
Private investments are investments in assets that are not traded in regulated or public markets, including privately owned real estate. In recent years, institutional investors have increased their exposure to privately owned real estate. These investments are an important portfolio diversification tool because they give access to alternative asset classes and allow effective risk management through the following characteristics:
HOW DOES REAL ESTATE DIVERSIFY MY PORTFOLIO?
The positive aspects of diversifying your portfolio in terms of asset allocation are well documented. Real estate returns have relatively low correlations with traditional investments such as stocks and bonds.
CAN REAL ESTATE BE A HEDGE AGAINST HEDGE?
Real estate income tends to increase faster in inflationary environments, allowing an investor to maintain real returns.
DO INSTITUTIONS INVEST IN REAL ESTATE?
Real estate returns are based on relatively reliable and predictable cash flow streams and are collateralized by the tangible asset of land, allowing investors to be much more confident than with investments in the broader equity market, which continue to display volatility and low expected returns. Based on consistent long-term results, real estate has become a core asset class for institutional investors, adding professionalism and liquidity to this investment category. Additionally, our research has shown that many properties are currently severely undervalued, offering an unprecedented opportunity to acquire such assets.
Well-chosen private real estate investments have delivered long-term investment performance generating high returns. Investing through a fund that aggregates investor capital provides investors exposure to a variety of investment properties, allowing minimal projected risk and the potential for more consistent investment returns. Private real estate investment has historically generated these returns with relatively low volatility.