Case Studies

Global Private Bank

Client Name

Global Private Bank

Summary

A unique private real estate fund investing solely in co-investments and offered exclusively to private clients.

Challenge

In order to offer its ultra high net-worth clients and families access to private real estate opportunities, this global private bank turned to Townsend to structure and manage a diversified portfolio of non-core real estate investments.

Solution

Townsend created a customized investment strategy that fit this client’s specific needs as well as the asset allocation model for private market alternatives.

Within the Townsend global investment platform, we have a dedicated senior team of investment professionals exclusively focused on co-investments, clubs, secondaries, joint ventures and recapitalizations. With a global investment perspective and outlook, this team identified opportunities, risks and investment themes that guided and informed its investment research, selection and portfolio management process. Ultimately, the Townsend team delivered to the client an opportunistic, multi-strategy real estate investment fund consisting of co-investments.

Co-investments are direct investments in single properties or portfolios alongside established real estate operating partners. They provide access to unique global opportunities, enhanced governance and control, and attractive fee terms while mitigating the j-curve for investors.

The fund portfolio is invested primarily in the U.S. and is diversified by region and property type. Example investments include:

  • Retail portfolio / repositioning
  • Apartment acquisition
  • Hotel repositioning
  • Fund recapitalization
  • REOC to private
  • Office repositioning
  • Manufactured housing repositioning
  • Apartment development

Outcome

The fund began investing in 2011 and completed with nine investments. As of December 2013, it has delivered a net IRR to the investor of 25% and a net equity multiple of 1.41 x.


The above example is for illustrative purposes only. It does not constitute a past specific recommendation for current investment. Townsend’s view regarding this example may be changed or modified at any time without further notice to you. Past performance is not a guide to future results. Actual results and developments may differ materially from those expressed or implied herein. Investing involves risk, including possible loss of principal.