Private Real Estate
Private real estate firms make investments in buildings and land that are not publicly traded and attempt to unlock value through a variety of strategies.
Benefits:
- Attractive risk/reward characteristics by capitalizing on the inefficient nature of the markets
- Low correlation to other asset classes, offering diversification
- One of the few sources of meaningful protection from inflationary shocks, as it tends to hold its value well during these periods
- Longer term investments, tend to make gains tax efficient
Considerations:
- Access limited to Accredited Investors or Qualified Purchasers*
- Capital drawn in the early years; distributions made in the later years
- Illiquidity: The time horizon for these investments is generally 7+ years, and early withdrawal is virtually impossible without steep penalties
- Only periodic valuations on these funds due to preparation difficulties
- High fees
- Late tax filings expected for taxable investors
Atlantic Trust focuses on value-added strategies to preserve capital and capture upside opportunity. We customize private real estate portfolios for clients, providing diversification through property type, geography, strategy and vintage years. Our extensive network of contacts and relationships in the private real estate industry provide access to industry-leading managers.
*Accredited Investors have investable assets of more than $1.5 million; Qualified Purchasers have investable assets of more than $5 million
The Chartered Financial Analysts® (CFA®) designation is globally recognized and attests to a charterholder’s success in a rigorous and comprehensive study program in the field of investment management and research analysis. The Certified Financial Planner Board of Standards Inc. owns the certification marks CFP® and CERTIFIED FINANCIAL PLANNER™ in the U.S.
