The private real estate sector has a watchful eye on how regulation, data and technology are impacting business. These factors exert unprecedented pressures on fund managers’ operating environments, across all alternative asset classes. Given this uncertain climate, managers are opting for traditional domiciles – with familiar tax and regulatory regimes, and optimal conditions for doing business – for their next funds. Yet despite the potential for disruption, fund managers that responded to this survey are not expecting it to negatively impact performance over the next decade.
Delaware is the domicile of choice for a clear majority of respondents: 54 percent intend to register their next fund in the US state, and the survey data makes it clear why. The state is seen to offer optimal conditions for doing business, and the most favorable regulatory and tax frameworks. It is worth keeping in mind the majority of respondents are headquartered in North America, which may have had an influence over their choice. Nevertheless, it is a vote of confidence in Delaware as a business-friendly jurisdiction.
PERE surveyed the 75 largest private equity real estate managers. We received responses from 51 managers: 31 are headquartered in North America, 11 in Asia and nine in Europe. Answers were given on an anonymous basis and the results aggregated. Where respondents were asked to give three answers, the first answer was given three points, the second two points and the third one. An average was then taken of the total.