Active Private Equity Real Estate Strategy

By Muldavin, Scott R. | Real Estate Issues, Fall 2009 | Go to article overview

Active Private Equity Real Estate Strategy


Muldavin, Scott R., Real Estate Issues


Active Private Equity Real Estate Strategy

by David J. Lynn, Ph.D. ([C]2009, John Wiley & Sons, Inc., 286 pages)

THIS BOOK "IS A COLLECTION of abridged market analyses, forecasts, and strategy papers from ING Clarion's Research & Investment Strategy (RIS) group ... It is not meant to be a comprehensive approach to strategy formulation for the real estate industry, but instead illustrates a cross section of private equity strategies across the various property types." (1)

Active Private Equity Real Estate Strategy effectively achieves what it intends, providing readers with an inside look at the kinds of issues, investment factors and other considerations that go into private equity real estate decision-making at one of the world's largest real estate investment management organizations. Books on private equity real estate investment are rare, and even rarer is a book that spends less time defining terms and more time discussing the nuance and process of making private equity decisions. In this case, unlike in making sausage, the process is enjoyable to learn about.

While most of the chapters focus on describing the key investment drivers and risks for particular property sectors, and will be quite useful for those readers who want to understand how institutional property investors think about real estate, it is in chapters 11 and 12 where the book lives up to its name. Chapter 11, "Active Portfolio Management using Modern Portfolio Theory," introduces "Hypothetical Fund Forecasts" utilizing sector, region and metropolitan area forecasts. Key issues in benchmarking, balancing and rebalancing portfolios and scenario analysis to test the impact of rebalancing are discussed. While the treatment of these issues is not extensive, it is difficult to find books that address them at all.

Chapter 12 on derivatives is quite good. While derivatives are seen as somewhat of a "dirty" word today, this chapter demystifies some important private equity-based derivatives that can have important applications to active portfolio management through hedging, asset allocation and rebalancing, and speculation. The chapter discusses the key risks of derivatives--liquidity, basis risk, counter-party risk and interest rate risk, and provides some detailed applications of derivatives as a form of portfolio insurance and to rebalance a fund.

[ILLUSTRATION OMITTED]

The book's initial chapters start with an overview of the key markets and trends that form the basis of more sophisticated investment strategy and active portfolio management techniques, which are discussed in the second half of the book. While the initial chapters on the real estate market and forecasting are straightforward and may be useful for those with limited background in these issues, the chapter on recession simulation is interesting and of course, quite important in today's market environment. …

The rest of this article is only available to active members of Questia

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Note: primary sources have slightly different requirements for citation. Please see these guidelines for more information.

Cited article

Active Private Equity Real Estate Strategy
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen
Items saved from this article
  • Highlights & Notes
  • Citations
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Search by... Author
    Show... All Results Primary Sources Peer-reviewed

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.