The Cornell Baker Program not too long ago welcomed Doug Weill, Founder and Co-Managing Companion of Hodes Weill & Associates as a visitor in our Distinguished Speaker Sequence. Doug Weill and David Hodes based Hodes Weill & Associates (Hodes Weill) in 2009. Since then, the agency has grown into a number one international capital advisory agency specializing in the actual property funding and fund administration business. Mr. Weill oversees the agency’s origination of latest enterprise, manages institutional non-public placement assignments, and leads the operations of the agency. Previous to Hodes Weill, he was a Managing Director for Credit score Suisse, the place he co-founded Credit score Suisse’s Actual Property Non-public Fund Group, and co-managed Credit score Suisse’s Actual Property Funding Group. He acquired his Bachelor of Science in Lodge Administration from Cornell College in 1988 and serves on the Advisory Board for the Baker Program and on the board of administrators of the Cornell Actual Property Council (CREC).
Mr. Weill structured his discuss round Hodes Weill’s operations in the actual property non-public fairness business, the place they supply strategic advisory companies to funding administration corporations, offering entry to capital from establishments all over the world. For the reason that founding of the agency in 2009, Hodes Weill has raised over $20 billion on behalf of their purchasers, throughout numerous institutional methods, structured as closed and open-ended commingled funds, joint ventures, and separate accounts. The agency markets to establishments globally, together with pension funds, insurance coverage firms, sovereign wealth funds, and college endowments, and operates within the U.S., Europe, Asia, the Center East, and sometimes rising markets. Mr. Weill additionally shared with us the agency’s plan to develop its focus into actual belongings and infrastructure and to open an workplace in Amsterdam.
Hodes Weill goals to complement institutional buyers’ entry to a spread of funding methods, utilizing their funding market experience and robust institutional course of familiarity. Mr. Weill highlighted that, with 3,000 energetic establishments all over the world, funding methods differ in form and dimension, with some corporations preferring a diversified portfolio in a number of nations, whereas others give attention to specialised belongings corresponding to information facilities and logistical warehouses. Apparently, because of the latest 20% to 30% development within the consumption of media content material, he additionally famous that some corporations have adopted focused methods to spend money on tv and film manufacturing studios.
Mr. Weill knowledgeable us that the institutional funding market is going through an unprecedented enhance in capital allocations. Many international institutional buyers are rising their tempo of investments in actual property, in an effort to attain their goal allocations, which common 10.7%. Establishments are considerably underinvested relative to their goal allocations, by a margin of 140 to 150 foundation factors, or 1.40% to 1.50% (in accordance with the Institutional Actual Property Allocations Monitor, a survey the agency publishes yearly in partnership with the Baker Program). On high of that, institutional buyers are additionally planning to pour capital into the market in an effort to hedge towards inflation will increase. On account of this setting, institutional market transactions in This autumn 2021 had been extraordinarily energetic, and Mr. Weill predicts this liquidity will proceed via 2022.
The institutional capital funding market is presently brimming with market alternatives, with Hodes Weill on the forefront within the area. Mr. Weill shared with us that the important thing to his agency’s success is to reveal experience within the area, present a robust monitor file, and set up an skilled crew. He reminded us that an alignment of curiosity with establishments and familiarity with the institutional course of is crucial for fulfillment on this area. He’s excited to see the evolution of the business and expects to see continuous development in institutional capital allocations over the approaching years.