A Peak Behind The Glass Curtain – EP.08

Behind-the-Scenes of a Real Estate Private Equity Firm

Today we’re going to talk about what goes on behind the glass curtain — what it actually looks like inside of a real estate private equity firm.

We go over the different types of teams within the firm, the importance of each of their roles, as well as their hierarchy; the two types of private equity funds; how these firms make money through the different types of fees they charge; and the general atmosphere and physical environment of the firms.

Tune in as we pull back the curtain on real estate private equity firms!

Key Takeaways:

[:13] About our topic for today: behind-the-scenes of the goings-on of a real estate private equity firm.

[1:09] The general atmosphere and physical environment of a real estate private equity firm.

[3:30] The teams that work inside the office and their roles. Firstly, the acquisition team and the hierarchy of the roles (the managing directors, directors, vice presidents, associates, and analysts.)

[11:59] The asset managing team’s role.

[12:58] The other teams in the office and the roles within them: the accounting team and the investor relations team.

[16:00] The difference between the two types of private equity funds.

[20:00] How these firms make money (through the acquisition fee, asset management fee, the disposition fee, and more).

[24:27] The biggest, most important fee of them all: ‘the promote.’