PT  - JOURNAL ARTICLE
AU  - Andrew Baum
AU  - Jamie Alcock
AU  - Nicholas Colley
AU  - Eva Steiner
ED  - Goyal, Gauri
TI  - Practical Applications of The Role of Financial Leverage in the Performance of Private Equity Real Estate Funds
AID  - 10.3905/pa.2014.2.1.060
DP  - 2014 Jul 31
TA  - Practical Applications
PG  - 1--4
VI  - 2
IP  - 1
4099  - https://pm-research.com/content/2/1/1.11.short
4100  - https://pm-research.com/content/2/1/1.11.full
AB  - The Role of Financial Leverage in the Performance of Private Equity Real Estate Funds Andrew Baum Jamie Alcock Nicholas Colley Eva Steiner Leverage is the scourge of private equity real estate funds, according to the results of this detailed research on the three main investment styles: Core, value-added and opportunistic.Investors beware: Base your manager selection decisions on underlying sector and market knowledge, rather than implied skill at using and timing leverage, the authors caution. Leverage may add positive returns in the short term, but managers are not good at predicting a downturn or of reducing leverage in anticipation of a downturn, they explain.“A lot of private equity real estate managers claim to have done things well-to correctly time the market (in leverage decisions)—but, in fact, they did not,” says co-author Andrew Baum, Honorary Professor of Real Estate Investment at the University of Cambridge .The article was co-written by Jamie Alcock, Associate Professor at the University of Queensland in Australia and Lecturer at the University of Cambridge , Nicholas Colley, Senior Analyst at Property Funds Research , and Eva Steiner, PhD candidate at the University of Cambridge .TOPICS: Real estate, equity portfolio management, in markets