Regulation & Legal

An increase in exit cap rates and cost of debt – as well as operating costs rising faster than rental rates – were among potential inflation-driven challenges cited by managers.

Blackstone’s record-setting €21bn Mileway recapitalization comes at a time when regulators are weighing significant changes to such transactions.

For real estate managers, new rules would require additional fee disclosures and provide less flexibility in dealing with investors.

If brought into law, the proposals would include ban a raft of fees, expenses and business practices in all private funds.

The private sector is moving forward with its own ESG initiatives and standards in the absence of clear political leadership and regulatory direction.

US alternative fund managers are growing and diversifying their businesses, which is leading to a rise in outsourcing and the popularity of EU domiciles, says RBC I&TS’s Cyril Schopfer.

Real estate managers have begun to target retail investors. However, the challenges involved suggest this route is not for everyone, says RBC’s Dirk Holz.

The Regulation and Fund Domiciles Survey, conducted by PERE and RBC Investor & Treasury Services, shows managers are positive about growth expectations even as they prepare for new challenges in the regulatory environment.

Barrack’s arrest this week made headlines, but it is only a sad footnote in the demise of a once mighty private equity real estate firm.

An incoming EU directive pertaining to third-party pre-marketing activity could exacerbate the challenges facing UK fund managers, write Debevoise & Plimpton's Patricia Volhard, Jin-Hyuk Jang and John Young.