Easily integrate a private-labeled portal to tap into the same technology powering our public marketplace to raise funds with your private network of investors. Your private portal allows you to invite existing or new investors to view your offerings, easily raise funds online, and increase deal flow. And you can fundraise online with confidence, our team maintains an audit trail of all documents and fundraising activity.
Minimum Sponsor Criteria
Sponsors on our platform have already created strong networks with investors that give life to subsequent deals. We have over 103,500 accredited individual and institutional investors on our marketplace.
Our team has spent decades in the Real Asset investing space, sourcing and structuring equity and debt for deals at an institutional scale.
It is this knowledge of the inner workings of the industry that allows us to build a platform with sponsors in mind. We engineered our model to facilitate the relationship with investors, not detract from it. From online information regarding your offering to digital distribution of offering material, proprietary investment software automates your fundraising with your private network and provides you with an easy to maintain book of record.
According to the 2017 Trends in Investing Survey from the Financial Planning Association, 47% of financial advisors are looking for new ways to diversify their client portfolios. Our platform can better facilitate interaction with thousands of Financial Advisors nationwide so that your firm can diversify your client base to include sophisticated Financial Advisors that are seeking to diversify their client portfolios away from common stocks and bonds while adding alternative income, inflation protection and long term return potential. Advisors using our platform are able to promote their offerings online to their client investors and track investor engagement. They can also use the advisor tools to provide updated investment information to their investors throughout the investment period. Sponsors invite advisors to join their private portal. Advisors then use the our platform to invite their investors to join the portal, access offerings and download offering material.
Despite global economic slowdown in 2019, private real estate experienced uninterrupted growth. Yield seeking investors craving real estate’s reliable cash flows plowed additional capital into the sector, propelling total amount of funds raised to USD $151 billion, an all-time record. The surge in dry powder in tandem with a 5.3% increase in unrealized value – lifted assets under management (AUM) to a record USD $992 billion as of June 2019, marking the fourth consecutive year of AUM expansion for the industry.
"Be fearful when others are greedy. Be greedy when others are fearful", Warren Buffett.
We believe investors should heed warning indicators as fewer private equity real estate fund vehicles reached a final close in 2019 with 295 Funds achieving final close, the lowest total in ten years. In the midst of the Global Financial Crisis (GFC-2009) only 229 funds closed.
We also would like to highlight that capital consolidation in the industry intensified. 44% of the total capital raised was collected by the 10 largest funds. Only two of those funds dominated the fundraising cycle: Blackstone Real Estate Partners IX, raising USD$20.5billion to ascending to the largest private real estate fund closed in history, and Brookfield Strategic Real Estate Partners III, which amassed USD $15 billion ranking as the 3rd largest real estate private equity fund.
Deal volume and value tumbled amid apprehensions regarding rising valuations with numerous GPs staying on the pulling back by accumulating dry powder. Total number of private equity real estate (PERE) deals decreased by 4.7% from prior 12 months, simultaneously aggregate deal value collapsed by more than 10%. September 2019, the Blackstone Group set a record for raising private real estate’s largest-ever fund, the firm set another record by acquiring Singapore-based GLP’s US logistics portfolio for USD$18.7 billion striking the largest-ever Private Equity Real Estate deal.
Investors trends reveal divergent approaches as several sought safety, driving core funds to raise over 3 times the capital as the year before. Conversely, other investors targeted higher-risk strategies as opportunistic funds swelled by 38% to almost USD$70 billion in 2019, simultaneously distressed funds rose by more than 8 times to USD$8.4 billion.
Consequently, unconventional fund managers sought out new niches like Property Technology (PropTech) which incorporates broad range of businesses that are using technology in innovative strategies. Real estate companies are seeking to improve operational efficiencies by leveraging technologies, which has boosted demand for products and services offered PropTech space. 2019 saw 209 real estate technology-focused buyout and venture capital deals spread across USD $13 billion in total which is 200% more than recorded in 2018.
As of April 2020, there are 918 funds actively targeting USD $281 billion, which will be a record for number of funds and aggregate capital targeted as investor appetite remains robust. (Source: Private Equity International 2020 Report)
Institutional investors are seeking to maintain or increase their allocation to real estate beyond 2020 as the asset class has delivered with sustainable yield as well as capital appreciation.
We see the biggest challenge for GPs will be delivering fund performance as market conditions worsen due to COVID-19 global health crisis leading to a global recession.
RealCapitalInnovations™ is pushing forward and evaluating opportunities that have emerged as a result of this new market. Our team feels that relative risk/reward in the private markets has not yet caught up with the new reality and public comps.
Hence, we prefer to slow down, form hypotheses, and wait for opportunities which explains why we have select new opportunities listed in the last few weeks. For now, we are asking investors for the same, be patient. Investment opportunities are expected to get better in the coming weeks and months, so keep your capital ready.
With RealCapitalInnovations™ access, we believe you will see potentially strong risk-adjusted opportunities emerge and we want you to be able to educate yourself and take advantage of the market dislocation.
RealCapitalInnovations™ is not a broker-dealer and does not solicit investors, engage in any negotiations regarding potential investments, or participate in the sale or purchase of any securities or otherwise effect transactions in securities. Any sale or purchase of securities is in the sole discretion of, and is conducted directly between, the issuer and the prospective investor. All information regarding potential investment opportunities is prepared solely by the issuer, and such issuer is solely responsible for the accuracy of all such statements. RealCapitalInnovations™ has not independently verified any such information.
Copyright © 2020 RealCapitalInnovations™