CoInvestment Partners, Piyush Bhardwaj educates his audience on the tiers of Middle Eastern capital and how non-U.S. investors are moving beyond the traditional investment model of fund investing. Domestic U.S. and non-U.S. investors are taking a ‘rifle-shot approach’ to investing in real estate, partnering with best in-class operators and developers.
Mr. Bhardwaj explains that developers and operators need diversify their investor base and work with hundreds of non-U.S. investors including family offices, quasi-Sovereign Wealth Funds and pension funds. He emphasizes “the beauty about [these] investors is that they like to grow with their partners… and invest through cycles. These cash-flushed, sophisticated investors take a long term view to U.S. real estate.”
Piyush draws upon his years spent in the Middle East, setting up a real estate investment management platform and concludes that raising capital from the Gulf requires professionals with transaction execution experience in the targeted markets. He goes on to explain “merely, having a relationship person is not sufficient, you need someone who is fluent in the markets and is able to elaborate on deal metrics like demand drivers, new supply, replacement cost, recent trades, etc.”
Piyush predicts that a good percentage of non-U.S. capital making its’ way to various U.S. markets is here to stay. The following interview conducted by Zoe Hughes is one of the most watched videos on the PrivcapRE: