Maximizing Value in the Real Estate Private Equity Space: Expansion, Competition, and Alliance

Abstract

Private equity firms must look at creative options for enhancing their growth strategies in the wake of a heavier regulatory environment and the globalization of the playing field. Growth can take multiple forms of expansion, including diversification, locations, sectors, and risk, and once the avenues of growth are decided, the firms must consider the best approach to achieving long-term success in that new arena. Strategic alliances with key investors and direct competitors can provide key resources but must be utilized carefully. Examining the changing landscape, we see the interrelatedness of three concepts: 1) management of the competitive landscape that is expanding globally, 2) expansion into new markets as a result of that competitive landscape, and 3) strategic alliances as a viable means to achieve this expansion.

TOPICS: Private equity, real estate, equity portfolio management, legal/regulatory/public policy