How managers are fundraising for a downturn

Many firms are seeking ways to secure dry powder in the event of an economic slowdown, but these tactics do not always benefit investors.

It is a longstanding predicament in the private real estate industry: the optimal time to raise capital and the optimal time to deploy capital are often at odds with each other.

As James Jacobs, head of real estate in the private capital advisory group at investment bank Lazard, puts it: “The easiest time to raise capital is often the most difficult time to invest it, whereas the hardest time to raise capital is often the best time to invest in real estate.”

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