Skip to main content

Main menu

  • Home
  • Latest Articles
  • Past Issues
  • About PA
  • IPR Logo
  • About Us
  • Journals
  • Publish
  • Advertise
  • Videos
  • Webinars
  • Collections
  • LinkedIn
  • Twitter

User menu

  • Sample our Content
  • Request a Demo
  • Log in

Search

  • ADVANCED SEARCH: Discover more content by journal, author or time frame
Practical Applications
  • IPR Logo
  • About Us
  • Journals
  • Publish
  • Advertise
  • Videos
  • Webinars
  • Collections
  • Sample our Content
  • Request a Demo
  • Log in
Practical Applications

Practical Applications

ADVANCED SEARCH: Discover more content by journal, author or time frame

  • Home
  • Latest Articles
  • Past Issues
  • About PA
  • LinkedIn
  • Twitter

Practical Applications of The Role of Financial Leverage in the Performance of Private Equity Real Estate Funds

Andrew Baum, Jamie Alcock, Nicholas Colley, Eva Steiner and Gauri Goyal
Practical Applications Summer 2014, 2 (1) DOI: https://doi.org/10.3905/pa.2014.2.1.060
Andrew Baum
  • Find this author on Google Scholar
  • Find this author on PubMed
  • Search for this author on this site
Jamie Alcock
  • Find this author on Google Scholar
  • Find this author on PubMed
  • Search for this author on this site
Nicholas Colley
  • Find this author on Google Scholar
  • Find this author on PubMed
  • Search for this author on this site
Eva Steiner
  • Find this author on Google Scholar
  • Find this author on PubMed
  • Search for this author on this site
Gauri Goyal
  • Find this author on Google Scholar
  • Find this author on PubMed
  • Search for this author on this site
  • Report
  • Info & Metrics
  • PDF (Subscribers Only)
Loading

Click to login and read the full article.

Don’t have access? Click here to request a demo 
Alternatively, Call a member of the team to discuss membership options
US and Overseas: +1 646-931-9045
UK: 0207 139 1600

The Role of Financial Leverage in the Performance of Private Equity Real Estate Funds Andrew Baum Jamie Alcock Nicholas Colley Eva Steiner

Abstract

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

  • The content is made available for your general information and use and is not intended for trading or other specific investment advice purposes or to address your particular requirements. We do not represent or endorse the accuracy or reliability of any advice, opinion, statement, or other information provided any user of this publication. Reliance upon any opinion, advice, statement, or other information shall also be at your own risk. Independent advice should be obtained before making any such decision. Any arrangements made between you and any third party named in this publication are at your sole risk.
View Full Text

Don’t have access? Click here to request a demo

Alternatively, Call a member of the team to discuss membership options

US and Overseas: +1 646-931-9045

UK: 0207 139 1600

Log in using your username and password

Forgot your user name or password?
PreviousNext
Back to top

Explore our content to discover more relevant research

  • By topic
  • Across journals
  • From the experts
  • Monthly highlights
  • Special collections

In this issue

Practical Applications: 2 (1)
Practical Applications
Vol. 2, Issue 1
Summer 2014
  • Table of Contents
  • Index by author
Print
Download PDF
Article Alerts
Sign In to Email Alerts with your Email Address
Email Article

Thank you for your interest in spreading the word on Practical Applications.

NOTE: We only request your email address so that the person you are recommending the page to knows that you wanted them to see it, and that it is not junk mail. We do not capture any email address.

Enter multiple addresses on separate lines or separate them with commas.
Practical Applications of The Role of Financial Leverage in the Performance of Private Equity Real Estate Funds
(Your Name) has sent you a message from Practical Applications
(Your Name) thought you would like to see the Practical Applications web site.
CAPTCHA
This question is for testing whether or not you are a human visitor and to prevent automated spam submissions.
Citation Tools
Practical Applications of The Role of Financial Leverage in the Performance of Private Equity Real Estate Funds
Andrew Baum, Jamie Alcock, Nicholas Colley, Eva Steiner
Practical Applications Jul 2014, 2 (1) DOI: 10.3905/pa.2014.2.1.060

Citation Manager Formats

  • BibTeX
  • Bookends
  • EasyBib
  • EndNote (tagged)
  • EndNote 8 (xml)
  • Medlars
  • Mendeley
  • Papers
  • RefWorks Tagged
  • Ref Manager
  • RIS
  • Zotero
Save To My Folders
Share
Practical Applications of The Role of Financial Leverage in the Performance of Private Equity Real Estate Funds
Andrew Baum, Jamie Alcock, Nicholas Colley, Eva Steiner
Practical Applications Jul 2014, 2 (1) DOI: 10.3905/pa.2014.2.1.060
del.icio.us logo Digg logo Reddit logo Twitter logo Facebook logo Google logo LinkedIn logo Mendeley logo
Tweet Widget Facebook Like LinkedIn logo

Jump to section

  • Article
    • Abstract
    • Overview
    • Practical Applications
    • Key Definitions
    • Practical Applications Report
  • Info & Metrics
  • PDF

Similar Articles

Cited By...

  • No citing articles found.
  • Google Scholar
LONDON
One London Wall, London, EC2Y 5EA
United Kingdom
+44 207 139 1600
 
NEW YORK
41 Madison Avenue, New York, NY 10010
USA
+1 646 931 9045
iprjournals@pageantmedia.com
 

Stay Connected

  • LinkedIn
  • Twitter

MORE FROM PMR

  • Awards
  • Investment Guides
  • Videos
  • About PMR

INFORMATION FOR

  • Academics
  • Agents
  • Authors
  • Content Usage Terms

GET INVOLVED

  • Advertise
  • Publish
  • Article Licensing
  • Contact Us
  • Subscribe Now
  • Log In
  • Update your profile
  • Give us your feedback

© 2022 Pageant Media Ltd | All Rights Reserved | ISSN Print: 2329-0196 | E-ISSN: 2329-020X

  • Site Map
  • Terms & Conditions
  • Cookies
  • Privacy Policy