We are the real estate private equity firm with business all over the world. Our portfolio spans multiple asset classes, including office, retail, multifamily, industrial, hospitality in Europe and Asia Pacific. Because our assets are diversified by sector and geography, our portfolio’s exposure to movements in any single market is reduced, minimizing volatility.
Across our public and private investment vehicles, we generate superior returns by focusing on real estate fundamentals—leasing, financing, development, construction, and property and facilities management. Our long-term objective is to generate stable and growing distributions for our investors while protecting them against downside risk.
We seek to acquire high quality investments at discounts to replacement cost. We then improve the properties through hands-on management and targeted value-add initiatives. Our efforts result in solid returns for investors and strong economic assets for communities.
Our investment philosophy of risk control reflected in the following strategic areas, in order of priority: distress, inefficiency, value-added and long-term growth.
The Real Estate group is particularly well positioned to leverage the firm’s product, industry and geographical reach in global markets, where corporate and real estate assets are often bundled inefficiently.
Blacktree follows the Real Estate Value-Add strategy. It expands the reach of our real estate platform through investments that have the potential to provide stable income and attractive risk-adjusted returns, but do not have the requisite distress or total return profile to be a candidate for our Real Estate Opportunities funds. The Real Estate Value-Add strategy seeks to achieve superior risk-adjusted returns through investments in high-quality real estate assets with an emphasis on income and long-term growth.
This strategy targets commercial real estate assets, with a particular emphasis on office, multifamily, industrial, and retail properties. It also considers debt and other income-producing investments on a limited basis.
Consistent with Blacktree’s investment philosophy, the Real Estate Value-Add strategy emphasizes the importance of market inefficiency, consistency and controlling risk. The team utilizes its global platform’s existing infrastructure and relationships to acquire value-add real estate investments. The strategy mitigates downside risk by identifying price discounts relative to intrinsic value and replacement cost, diversifying positions by property type and geography, and conservatively managing leverage.
Our approach adheres to Blacktree’s investment philosophy of risk control, consistency and bottom-up analysis. The Real Estate team works in close collaboration with other Blacktree investment teams and an established network of high quality partners throughout the research and investment management process.