Investor - REOC Partnerships

MAY 2025

Now may be the ideal time to explore real estate platform investing strategies

by Prabhu Raman

Recent announcements by Australian Retirement Trust, which plans to invest $1 billion in and with private real estate operating companies (REOCs) through an external manager, and Switzerland's Partners Group, which is also doing more platform investing, appear to indicate some investors are pursuing variations of platform investing strategies. Given the tough fundraising environment and the resetting of asset valuations, now may be an auspicious time to consider these investment opportunities.

There are several variations of platform investing. On one end of the spectrum are investments in REOCs with a linear capital structure, where investors back the firm that directly owns and manages assets. On the other end of the spectrum are investments in REOCs that manage investment vehicles with third-party capital. These vehicles, in turn, own real estate assets. There are also hybrids, which include when a strategic investor co-managers the investment vehicles and leads investment management, allowing the REOC to focus on real estate execution. Here, we will focus on investing in REOCs that also manage investment vehicles, which are typically poised for the most rapid growth.

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ABOUT ACCORD CAPITAL PARTNERS LLC

Accord, through its affiliates, is a global capital advisor, principal investor and investment manager. With its headquarters in San Francisco and personnel in Chicago, London, Hong Kong and Seoul, Accord engages with a wide variety of participants in the real estate private equity industry. Accord Capital Partners, its broker/dealer affiliate, provides advisory and capital raising services in the United States. Accord Europe Limited, its broker/dealer affiliate, provides advisory and capital raising services in the United Kingdom and Europe. For further information on Accord, visit: www.accord-group.net.