New Capital Hard to Find

Ares Management senior partner Bruce Cohen tells us there's no shortageof equity in existing funds anxious to be deployed in CRE projects. (Equity gets really antsy when it's sitting in funds, twiddling its numbers.) But for equity providers, raising equity for new funds is a lot more problematic. Shameless plug: Bruce is a panelist at Bisnow's Chicago Capital Markets Summit on May 29. Register.
 
"If you're looking to raise your next fund, you're going into a marketplace with not as much capital, longer lead times, and a vastly more competitive atmosphere," Bruce says. Times are much more uncertain, and everyone is much more cautious. Even the most prominent fund managers in the country are having a hard time, Bruce explains. As for the debt side, he notes institutional-quality properties with stable cash flows are experiencing no shortage of long-term permanent debt. Among others, life companies, conduits, and the GSEs (for multifamily properties) are falling all over themselves to provide it.
 

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