Alpaca Debuts Private Equity Real Estate
Luisa Crawford Oct 01, 2023 13:47
Alpaca, a New York-based alternative investment firm, has launched a private equity real estate platform, Alpaca Real Estate (ARE), led by Daniel Carr and Peter Weiss. The platform, with significant backing from GCM Grosvenor, aims to leverage technology and operational strategies to enhance real estate investment returns amid current market dislocations.
According to a press release on September 29, 2023, the alternative investments management company Alpaca of New York presented its Alpaca Real Estate (ARE) private equity real estate platform to the public for the first time. The platform's first foray into the real estate market was co-founded by industry veterans Daniel Carr (ex-Ares Management) and Peter Weiss (ex-Prospect Ridge), and it receives significant backing from funds provided by GCM Grosvenor, the global alternative investments leader.
Through its venture capital and real estate investments, Alpaca has been at the forefront of the movement to combine the digital and physical realms ever since the company's founding in 2012. On the other hand, GCM Grosvenor has been a leader in the field of global alternative asset management for more than half a century and is currently responsible for the management of approximately $76 billion worth of assets.
Carr and Weiss are in charge of directing the initiative, and substantial anchor capital is being provided by GCM Grosvenor. This demonstrates a solid financial foundation as the company moves into the real estate industry. The two have over ten years of experience between them in real estate investment, which was further honed during their time spent working for other reputable companies before they co-founded ARE.
The objective of ARE is to capitalize on the dislocations that are currently present in the market by placing an emphasis on investments that require recapitalization, repositioning, strategic capital, or physical transformation. This will create a compelling value proposition for institutional investors, which is especially important during periods when asset values are being reset. The platform intends to combine strong returns on real estate investments with enhancements driven by operations and technology.
The application of accretive technology throughout ARE's real estate holdings in order to improve operational efficiencies and cultivate incremental alpha is a noteworthy component of the company's overall strategy. This tech-centric approach is envisioned as being able to bridge the gap that currently exists between real estate entities and PropTech companies, thereby driving technology adoption from the ground up.
ARE is well-positioned to carve out a niche at the convergence of real estate and technology investment thanks to Alpaca's legacy of investing across PropTech, sustainability, and climate-centric firms for more than a decade, as well as Carr's and Weiss' collective real estate investing expertise, which exceeds $10 billion in total transaction capitalization.
The venture also marks the continuation of a synergistic relationship with GCM Grosvenor. The Managing Director of GCM Grosvenor, Peter Braffman, expressed optimism about building a tech-augmented traditional real estate platform alongside Alpaca. This venture marks the continuation of this relationship.
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