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5 Reasons Why Private Equity Real Estate Sponsors Underutilize Investor Management Platforms

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Sponsors often invest in investor management platforms but fail to properly implement the software, leaving the tools underutilized. Poor system documentation, unintuitive user interfaces, and lack of experience make adoption difficult and discourage regular use. Without proper implementation, maintenance, and controls, sponsors tend to lose confidence in investor managements platforms and revert to manual processes. … Read more

Accounting Controls for CRE Sponsors: How to Identify Missed Tenant Payments

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Key Takeaways Payments from tenants fail to settle or are processed incorrectly from time to time, and this can cause significant issues for sponsors and property managers. Commercial real estate sponsors can use two controls to prevent tenant payment issues: daily oversight of tenant ledgers and month-end bank reconciliations. Tenant ledgers should be monitored by … Read more

When Investor Management Platforms Fail: Calculating Net Asset Value

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A woman sitting in a modern office crunching numbers on an old school calculator.

Key Takeaways Many open-ended private equity real estate funds must calculate, or strike, net asset value (NAV) on a recurring basis for any number of reasons, including to allow new investors to initiate positions, to allow existing investors to exit positions, to satisfy limited partner reporting requirements, and to comply with audit requirements. In basic … Read more

Themes Shaping the Private Equity Real Estate Industry: Sponsor Risk and Capital Stack Complexity

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An institutional investor looking through a magnifying glass to signify due diligence.

Key Takeaways Institutional real estate investors are placing greater emphasis on “sponsor risk” during the due diligence process. Across the CRE industry, capital stacks are becoming more complex, creating administrative challenges for sponsors. Sponsors that demonstrate strong processes and vendor relationships designed to mitigate operational risk are lowering barriers to securing funding. The clients we … Read more

When Should a Commercial Real Estate Sponsor Hire a Fund Administrator?

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Key Takeaways Several factors can guide commercial real estate general partners in determining when to engage a fund administrator, including operational complexity, growth objectives, investor expectations, and time constraints. Engaging a fund administration provider early in the investment entity’s lifecycle can yield substantial benefits, especially related to early-stage marketing and risk mitigation. An experienced fund … Read more