How do family offices and ultra high net worth individuals directly invest in private real estate deals?

Family offices continue to increase their investment allocations to direct investment in private real estate deals.

To increase their allocation family offices are looking to increase the amount of deal flow they see.

One way to do this is to network with real estate investment managers and developers, such as Pugh Management.

Another approach is to connect with syndicators and other family offices at conferences and in groups such as @FamilyOfficeNetworks, @TheFamilyOfficeClub, and others.

Family offices participate in these investments as either general partners or limited partners.

Family office club deals, where one family office is the GP and another is the LP or Co-GP are also common.

When you invest directly into a private deal your due diligence on not only the deal, but the sponsor is very important.

Ask yourself, “Does the team have the right experience and relationships to effectively and efficiently execute the investment thesis?”

If there is any doubt, then the next question is, “Can the sponsor plug any gaps with additional team members or with your guidance/feedback?” That assumes you and your team have the time and interest to take part in the deal as a Co-GP and that the Sponsor is interested in that approach.

Pugh Management works with family offices to invest in and develop real estate through partnerships either as a Co-GP or as a GP with the family in the LP position.