Operational Real Estate, PERE & Debt Fund Management Conference
Arkus Financial Services will be attending this year's 11th Annual Real Estate Fund Servicing Conference entitled "Operational Real Estate, PERE & Debt Fund Management"
Real Estate Investment Managers are still in the process of reconsidering their strategies both in light of real estate economic and credit market environment as well as through the impact of AIFMD on their business models. Real Estate Asset Owners do have different views and tap into the recognized expertise of the industry that covers private equity, direct real
estate, real estate securities and debt.
Debt funds are still gaining traction as non-bank lenders are filling the gap to fuel the CRE market through different loan strategies. Conversely, asset back financing and the European securitization activity is back on the levels pre- financial crisis. New opportunities are therefore building-up to create bespoke fund strucures to cater for such investment strategies and the needs of investors that encompass institutional, professional and retail segments.
German Special-AIFs investing in non-German real estate are also popular through a Luxembourg property vehicle to invest in Europe - UK, France and Spain, in the Americas, the US and Canada and in Asia and the Greater China Region.
In parallel, the implementation of AIFMD still remain an ongoing governance process amongst all involved including Managers, Funds, Investors, Service Providers and Regulators. It will be therefore of high interest to exchange amongst participants their own experience and in particular detail the composition of their boards, sub-committees, portfolio and risk functions, communication to/from the board and discuss the format of the relationship amongst Boards of the AIFM and AIF.
The panellists will also discuss:
- How to fill the gaps between INREV guidelines and day-to-day organization?
- What models work or would work for them?
- Do they in-source or out-source risk management – why and how?
- How they ensure compliance & what are the reporting tools they use towards CSSF with which results?
Challenges in risk management are high and different schools of thoughts have different approaches; the second panel will detail:
- How to use a mix of different calculation methodologies?
- How to set-up a common database between risk and portfolio management and aggregate different sources of information?
- Risk manager’s involvement at early stage in the investment cycle & definition of risk investment drivers
- Ex-post – scenario analysis – Stress -testing: How and when use them?
- How to standardize processes to collaborate with portfolio managers?
- How to identify and centralize the monitoring of operational risks and ensure its effectiveness at investment level?
In this respect, the “traffic light approach” seems rather idiotsyncratic as alternative assets such as real estate do bear a mix of quantitative and qualitative components embedded in its investment strategy.
This ESAFON conference will again take a non-complacent angle to explore new avenues to best address governance, risk, compliance, procedures, valuation, IRR, liquidity and reportings. The split of responsibilities and interractions introduced by the dual role of the AIFM and AIF does imply a change of mindset amongst the vaue chain and a new approach and definition of the tasks and functions cited above. This conference will address in much details the pre-requisite to the set-up and management of a real estate debt or infra-structure fund. All stakeholders duties involved in the process will be covered from origination to client reporting.