Private Equity in Real Estate

One of the popular investment structures is private equity real estate. This is a form of capital investment, in which investors acquire a share in physical real estate (commercial, residential, industrial, etc.). The purpose of such transactions is to receive income from rent, growth in asset value, and subsequent sale.

How do investment funds shape real estate markets?

Depending on the legal basis for doing business and the profile of investors, there are several fund structures for direct investment. For example, these can be closed investment funds, joint investment funds, or funds with the possibility of reinvestment. All of them pursue the goal of increasing the rental rate, optimizing the portfolio, attracting partners, and selling at the peak of the market cycle.

The choice of a private equity structure is essential not only for legal registration. Its presence is vital for displaying transparency of activities for investors, tax efficiency, ease of control, and flexibility in the process of exiting the project. A competent approach to building a fund allows not only to scale capital, but also to create sustainable profitability for years to come.