“Snack Foods" - Is Niche the New Normal? - by Scott Arden and Kelly Keith
Nobody likes getting older, let’s face it. But oftentimes “laugh lines” and a few extra gray hairs are accompanied by maturity and wisdom gained from experience. In many ways the private equity real estate space has matured to the point that, were it human, you may bump into it picking out reading glasses at a Warby Parker.
Over the years, many LPs have picked their proverbial horses in the space, be they generalist managers investing across the asset class or more targeted strategies focused on the classic major food groups: office, multifamily, retail and industrial. Given the market’s trajectory over the last 10 years, many of these managers have enjoyed a high rate of existing investor re-ups, which makes sense: be it from investing acumen, riding the wave of cap-rate compression or a combination of both, many managers have performed well/outperformed, giving their LPs little reason to shop elsewhere as they look to re-invest capital.