US. Why Large Pension Funds Are Investing In Private Real Estate
Real estate agents and investors across the country, from California to Florida, have noticed an uptick in offers submitted by institutional investors (paywall). Large pension funds are competing with investors and homeowners to buy everything: single-family homes, multifamily, commercial spaces — few asset classes are exempt. These deep pockets cannot resist the action, and for good reason. As the co-founder of a company that invests in private real estate, I’ve seen how property investments can provide greater diversification, income and yield opportunities than stocks and bonds.
Managing physical assets, however, comes with its own hassles and overhead. However, to avoid hands-on stewardship, many of these investors are now allocating funds to private real estate funds as opposed to other investment vehicles.
In this article, we’ll uncover how private equity enables institutional investors to reap the many benefits of real estate without inheriting the maintenance and management issues.
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