NEPC’s Dulari Pancholi was quoted in a recent FundFire article highlighting an upward trend in hedge funds moving into the real estate space over the past decade. View the article on FundFire’s site here.
Big hedge funds that have planted a flag in the real estate asset class appear to be thriving in their adopted markets with new vintages and fundraising efforts – an example of diversification that more of their peer managers might emulate as a way to tap potential growth.
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Extending into real estate can be beneficial to hedge funds, said Dulari Pancholi, a partner leading the credit and multi-asset teams at NEPC.
“Over the past few years, hedge funds have gone through their own struggles,” she said. “If they’re able to build a differentiated business that is a longer-dated product, it locks in a revenue stream that is different and not reliant on just the hedge fund model [where] assets can ebb and flow. So, that brings a little stability to the firm.”
There has been an “upward trend” of hedge funds developing real estate arms over the last decade, especially targeting credit and distress-driven strategies, Pancholi added.
Read the full article on FundFire’s website here.