Does anyone have experience on a search fund focused on real estate?

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January 26, 2020

by a searcher from The University of Texas at Austin - Red McCombs School of Business in Austin, TX, USA

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Reply by a searcher
from Columbia University in New York, NY, USA
@AndresaAmella I would be careful with this. Services are one thing. Real estate itself tends to be an asset that is easy to appraise, and often has many buyers on the market. The way a sleepy local seller will often sell their portfolio is through the many (and comparatively efficient) commercial real estate brokers out there. Search benefits from the relative inefficiency of the market and the fact that buyers often have little competition. Real-estate (from the asset side) tends to turn that on its head.
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Reply by a searcher
from The University of Chicago in Chicago, IL, USA
I think directly investing in RE would be much less attractive to investors given all of the other options for investing in real estate, whereas micro-cap private equity (how I think of search funds) is more difficult to access as an asset class. That said, I'm looking at themes related to real estate services if you're interested to discuss.
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