Opportunities amid the dislocation: Investing in Germany’s property market
This episode is sponsored by Arrow Global and first appeared on The PERE Podcast
Germany’s property market is facing the highest insolvency rate in Europe. Years of cheap credit and rising prices encouraged aggressive development, but when interest rates jumped, buyers paused, sales collapsed and projects ran out of cash. The result: a wave of bankruptcies across the sector.
However, in this episode, CEO of Arrow Global Germany Bernhard Hansen explains that there’s opportunity within this dislocation. Stalled projects and smaller developments are waiting for investors with the expertise and capital to finish them. With housing demand far outpacing supply, especially in cities like Munich, he believes there is still strong long-term potential.
That potential of course comes with challenges: stricter sustainability rules, tougher financing conditions, and wary buyers mean projects take longer and require deeper due diligence. Yet Hansen is optimistic. International investors and alternative lenders are stepping in, and he says the correction is less of an ending, and more of a recalibration of Germany’s real estate market.
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Should semi-liquids charge 2 and 20?
No trend has taken the private equity industry by storm quite like that of semi-liquid and evergreen funds. Data from consultancy Bfinance shows that at least $30 billion has been raised via private equity semi-liquid funds since 2020 – a figure that represents just 10 percent of the overall semi-liquids universe.
In this episode, Ajay Pathak, a partner and co-chair of Goodwin’s UK business, joins PEI senior editor Adam Le to discuss how management fees and carried interest are calculated; whether the typical 2-and-20 model prevalent in traditional drawdown funds make sense to apply to semi-liquid funds; whether charging carried interest on net asset value on both a realised and unrealised basis really make sense; and more.
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8:26
Disruption Matters: Winning the digital race
This episode is sponsored by AlixPartners
The Disruption Matters special podcast miniseries is back for its fourth season, and this year, leading industry experts discuss how private markets can deliver “weatherproof growth”, despite the headwinds of a tech revolution, geopolitics and volatile global markets.
In our third episode this season, we focus on how best to decide where, when and how to use AI tools to deliver growth, no matter the weather. These are groundbreaking technologies, but like any other tool, they’re only as good as the people using them. Even today, the buck still stops at the human leadership of the portfolio company and the private equity firm.
Guests include Jeremy Lehman, a director at Alix Partners; Jason McDannold, Americas co-leader of private equity at AlixPartners; Hoyoung Pak, global co-leader, AI and data, at AlixPartners; Sanjay Ravi, managing director at Partners Group; Lou D’Ambrosio, the co-lead of Goldman Sach’s global portfolio operations and value accelerator; Cory Eaves, partner and head of portfolio operations at BayPine; and Jay Park, the co-founder and managing partner of Prysm Capital.
For further reading on this show’s topics:
Practical AI For Private Equity Operating Partners | AlixPartners
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Bain's David Gross on how to invest in periods of heightened volatility
Tariff turmoil, trade wars and real conflict in the Middle East – these are just some of the challenges private equity participants have had to navigate so far this year.
Speaking to senior editor Adam Le, David Gross, co-managing partner at Bain Capital, said volatility and uncertainty is nothing new for investors.
“I’d be the first to agree that it’s a very disorienting time period,” Gross said. He points out, however, that volatility and uncertainty have characterised almost the past two decades. “Since the global financial crisis, we’ve seen heightened volatility in the investing world. If you just look at the VIX [volatility index] and other metrics, and the market windows that are open in the public market, you’ve seen heightened volatility."
Gross, who has been with the firm for 25 years and is also managing partner of Asia, discusses what effective investors need in uncertain environments, the attraction of defence investing in Europe, the exit environment, and why the firm has no current plans to launch a secondaries investment business.
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15:32
Unlocking potential in Dutch residential: Global capital is key
This episode is sponsored by Bouwinvest Real Estate Investors and first appeared on The PERE Podcast
The Dutch residential market has remained resilient despite economic turbulence and rising interest rates and is now emerging as a prime destination for international investors.
In this episode, Paul van Stiphout of Bouwinvest Real Estate Investors and Jorrit Arissen of Van Lanschot Kempen Investment Management unpack the forces driving the market’s strength – from a deep-rooted rental culture and robust occupancy levels to increasing demand for senior and student housing.
With the Netherlands facing a housing shortfall, Van Stiphout and Arissen discuss how foreign capital will be essential to bridge the gap. They also explore how demographic trends and public funding cuts are creating opportunities in niche sectors, such as senior living, which saw investment jump to €724 million in 2024.
PEI Group’s ‘Private Equity Spotlight’ podcast illuminates the latest trends in private equity across fundraising, portfolio management, deals, regulation and more. Get a front-row seat with our award-winning journalists from publications including Private Equity International, Private Funds CFO, Buyouts and PE Hub, as they interview the industry’s biggest personalities and dig deep into the dynamics affecting LPs, GPs and service providers. Available wherever you get your podcasts.
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