Real Estate Private Equity
This course provides practical insights into the world of private equity real estate, starting with an overview of industry participants, including the roles and motivations of LPs and GPs, and private equity investment structures. Students will delve into fundraising strategies, the fund lifecycle, performance metrics and evaluations measurements, and the investment and asset management processes. The course also reviews the ethics and governance issues in real estate fund management, and emerging trends in the industry. Throughout the course, students will apply their knowledge to real-world situations through case studies and practical examples. By the end of the course, students will have a practical understanding of the principles of private equity real estate investing and how they apply in real-world scenarios.
Topics
- Contextualize private equity in commercial real estate investing and explain the history and evolution of PERE markets and firms.
- Identify key stakeholders and participants in the private equity real estate ecosystem, including roles of GPs, LPs, and advisors.
- Differentiate private equity real estate from other real estate investment vehicles (such as REITs, direct ownership, and public debt/equity).
- Explain core investment strategies, PERE fund structures, and investment vehicles.
- Comprehend the motivations and incentives of institutional investors; explain capital allocation decisions to PERE funds.
- Understand how institutional investors (LPs) evaluate the performance and alignment of PERE fund managers (GPs).
- Map the complete lifecycle of a commingled PERE fund, including necessary documentation for fund construction and operation.
- Build and interpret financial models for properties and funds, including capital structure, leverage, and promote calculations.
- Analyze the impact of fund-level financial leverage and deal structuring on investor returns and GP compensation.
- Develop and apply due diligence processes for both assets and sponsors, including market, legal, environmental, and reputational risk assessments.
- Construct and manage diversified PERE portfolios, considering sectoral, geographic, and currency allocation.
- Understand and apply legal, regulatory, and governance frameworks governing PERE funds.
- Demonstrate negotiation and communication skills (e.g., term sheets, joint ventures, advocacy in investment committees).
- Identify and resolve ethical dilemmas and conflicts of interest in fund management, guided by professional industry codes.
- Evaluate the secondary market for LP interests and the increasing role of recapitalizations as exit and liquidity mechanisms within the private equity real estate industry.
Official roster learning outcomes
Prerequisites & course information
HADM 4200 or HADM 6200 or HADM 3210 or equivalents with permission of instructor.
Sources
- Course catalogue ↗2026-2027