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Sep 15, 2019

Posted on
May 27 2015

Singerman Real Estate (SRE), led by President and Managing Partner Seth Singerman (’05) recently closed its Singerman Real Estate Opportunity Fund II. The fund surpassed its initial target of $250 million to reach $275 million and closed within just six months. A testament to investors’ confidence in Singerman, the majority of investors for the fund—foundations, endowments, pensions plans, money managers, family offices, and high-net-worth individuals—had invested in SRE’s prior fund, a $118 million opportunity fund. In addition, these investors increased their commitment to the new fund by an average of 50%.

The firm is targeting an 18% net return and 1.75x multiple for Fund II. The fund has three years to make investments and five years to return capital to investors. SRE’s success is based on a commitment to value investing, which will allow SRE to generate returns in both up and down markets. “Our focus is on finding discreet assets where there’s dislocation in the marketplace, and where we can we generate value without assuming the market has significant fundamental improvement,” said Singerman. Although SRE is small—8 investment professionals—the firm has a national footprint and invests across all property types and throughout the capital stack.

To achieve such scale, Singerman has deliberately assembled a team of professionals with diverse yet complementary skillsets. “Someone may have more of a debt strength than an equity strength,” He says. “Someone may be stronger in equity-style investments. We have someone that is particularly strong in retail that came from General Growth Properties, and another is particularly strong in office and industrial.”

Although the team’s skills may be diverse, Singerman is relentless in building an over-arching culture, one based on integrity, hard work, collaboration, and creativity. As he says, “We want people to be intellectually honest and challenge each other but to do that in a warm, supportive environment where everybody is on the same page.” To support this culture and foster inclusion and commitment, Singerman offers to all professionals at the firm a share in the fund’s promote.

While many young professionals may have a goal of starting a fund like the SRE Opportunity Fund, Singerman provided a slightly different perspective:

“I don’t view myself as an entrepreneur. I view myself as somebody focused on creatively finding good investment opportunities…and trying to grow and improve as a person and as a firm. That can be done in the construct of your own organization or in the construct of a much larger organization. To me, part of the opportunity created here is simply we wanted a construct to be able to invest. It wasn’t to go off and stake our own path. It was more I have a love of investing. We’re confident that we’re thoughtful investors, and we wanted a platform to do that.”

About the Author

This article was written by Frank Cohen '16.