Why is Real Estate Private Equity an Attractive Prospect

Private equity real estate funding involves pooling of investors’ money to increase their buying power. The funds then go into tangible assets like property, to make them more viable and increase their value. An exit strategy is planned, so that the investors can gain maximum profit from the asset they pooled their funds into.

Private equity funds in India in the sphere of real estate approaches property ownership in a broad manner.  Partners are seen to invest in numerous types of property over different areas and locations. Strategies of ownership include raw land holdings or new developmental projects; however they also undertake total and complete redevelopment of existing properties or investments into those property ventures, which are struggling.

As far as the share of funds pooled in is concerned, PE funding is not rigid in the sense that funds can be either traditional or they can be asymmetric. Traditional funding involves all the investors investing with equal terms, whereas in an asymmetric funding, the terms can be unequal, as the name suggests. Some Well- established investors, for example, Everstone Capital undertake PE funds of various natures through their in depth knowledge that form excellent strategies for the same. Knowledge and experience gives private equity a definite edge in making better decisions as far as private equity is concerned, especially in spheres concerning real estate. India is developing tangible and non-tangible assets on a rapid scale , which has inevitably led to complex forms and strategies in investment.
 

If Individuals wish to invest in private equity real estate ,the smartest move would be to research and  locate a firm that excels in the know-how of the discipline. When one speculates a private equity firm's options of their funds, they should possess an understanding of each private equity fund’s structure and nature .