Real Estate Private Equity Funds: Five keys to success... and how we can help

Real Estate Real Estate Private Equity Funds Five keys to success... and how we can help Introduction The backdrop The backdrop— A robust and challenging environment Real estate private equity funds continue to attract unprecedented amounts of capital. The number of fund complexes and fund sizes continues to grow. Investment opportunities and structures carry with them increasing complexity. Given the primary focus on superior risk-adjusted yields and investor satisfaction, today’s environment presents fund principals with great opportunities and challenges. We’re here to help. This booklet sets forth the five keys to success, and how the member firms of Deloitte Touche Tohmatsu can support our private equity fund clients in achieving their goals. Success—the five keys Based on our experience working with clients and our involvement in the industry, we believe the following five categories of focus lead to success: • Attracting capital • Sourcing and qualifying investment opportunities • Fund and investment structuring • Investor reporting and operational excellence • Exit strategies Real Estate Private Equity Funds—Five keys to success Success— the five keys Success—the five keys Attracting capital •Build and sustain an exceptional investment yield track record. •Build and maintain an eminent and well-regarded team of advisors, including bankers, accountants, lawyers, and other specialists. •Obtain access to qualified investors. •Make sure that satisfied and loyal investors receive timely and effective communications, including financial and tax reports. •Establish, promote, and protect a brand that exudes quality, skill, and integrity. Attracting capital Sourcing and qualifying investment opportunities Fund and investment structuring Investor reporting and operational excellence Exit strategies Sourcing and qualifying investment opportunities •Do the right things to make people want to do business with you: Demonstrate that you understand the important issues, you conduct due diligence effectively and efficiently, and you have credibility to close. •Build an extensive network of joint venture partners who are trustworthy and skillful. Fund and investment structuring •Structure investments that are suitable, attractive, and efficient for domestic individuals, tax exempt institutions, and a variety of foreign investor profiles. •Establish best practice fee structures that align your interests with those of your investors. •Determine the right degree of leverage on investments and for the fund overall. •Structure investments to minimize federal, state, and foreign income, and asset & transfer tax costs, thereby providing optimal after-tax yield to investors and you. Investor reporting and operational excellence •Develop and operate properties efficiently and effectively. •Build and retain a skilled team at the advisor level. •Comply with all financial and tax regulatory matters in a timely fashion. Exit strategies •If desired, effectively recycle capital within a fund. •Correctly gauge ideal timing for closing a fund and starting a new one with the same investor group. Real Estate Private Equity Funds—Five keys to success ... - tailieumienphi.vn