Global real estate investment firm Greystar has launched its own private wealth division. The team will focus on high-net-worth investors with qualified purchaser status, RIAs and family offices and allocate investors’ money to Greystar funds alongside institutional capital.
Greystar appointed Stephen Mullin as managing director, private wealth, to lead the new team. Mullin has 20 years of experience in the private wealth channel. He previously worked as principal, investor relations, at private markets investment firm HarbourVest Partners, where he focused on raising money from high-net-worth investors and family offices on the West Coast. Mullin will be based in the firm’s Los Angeles office, reporting to Christie Wootton, Greystar’s managing director and head of Americas Investor Relations and Global Strategic Partnerships.
Greystar holds $78 billion in AUM across approximately 160 global markets. It’s most heavily invested in the multifamily sector, in addition to student housing, active adult communities, logistics facilities and life sciences properties. Its investment strategies span across core, core plus, develop-to-core and credit.
According to Greystar CIO Wes Fuller, the company has seen increased interest from HNW investors in funds dedicated to real estate investment strategies.
“We have observed that the private wealth channel is rapidly becoming more sophisticated and focused on long-term value creation, which we believe will lead to accelerating interest in sector specialists with vertically integrated business models. By launching a dedicated private wealth team, we are broadening our platform to support this investor segment,” Fuller said in a statement.
Alternative asset managers have been increasingly creating or expanding their private wealth divisions as more private investors allocate money to private markets, including private real estate assets. Private wealth money is then invested through specialized vehicles, among them interval funds, tender offer funds, traded and non-traded BDCs, that provide those investors with greater liquidity than is necessary for institutional money sources. A recent State Street survey forecasts that within two years’ time, over half of fundraising for private market assets might come from retail investors.
However, according to a company spokesman, Greystar has no current plans to create funds specifically targeted at private wealth investors.
“We are taking a thoughtful approach to expanding access for private investors by striving to build on the experience and capabilities Greystar has developed over decades working with institutions,” he said in a statement. “This is an important step in our goal to engage a growing segment of investors who are seeking exposure to professionally managed real estate strategies.”
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