Want foreign LPs? Be more nimble
GPs need to be increasingly nimble in order to attract the unprecedented wave of foreign capital targeting U.S. commercial real estate, says RSM partner Tom Green.
Advising managers to “absolutely” tailor their product offerings to cross-border capital sources, Green says the role of real estate is different for each foreign investor however GPs need to overcome the challenges of structuring, taxation and reporting in order to be able to tap into the new realities of the fundraising market.
He also argues that one of the greatest challenges facing managers will be identifying deals. “There’s just a tremendous amount of capital [targeting the U.S with 2015 expected to be] another record-breaking year in terms of capital raises,” Green says. “The challenge is going to be to be able to identify new opportunities to satisfy those investor’s appetites.”