Zach Vaughan, Managing Partner, Brookfield Asset Management – Real Estate, CEO/Director, Brookfield REIT, and Tyler Johnson, Regional Sales Director, Brookfield Oaktree Wealth Solutions discuss opportunities in private real estate equity and debt.
With U.S. inflation accelerating and interest rates jumping, there are certain tailwinds to residential real estate, such as the elevated cost of home ownership and insufficient supply to meet residential demands.
The environment of real estate debt, on the other hand, looks favorable. Real estate debt involves investing in mortgages or issuing loans. It is a method of investing passively in real estate, and income from a real estate debt fund is generated through interest charged on borrowed capital. So, higher interest rates earn more income for real estate debt investors.
Private real estate has lower volatility and is a good inflation hedge for a portfolio, explain Desai and Johnson. Historically, private real estate has offered attractive returns to investors in periods of large spikes in U.S. consumer inflation, making private real estate an attractive asset class in today’s market landscape.
Brookfield Real Estate has $256 billion in assets under management and is one of the world’s largest real estate investors. Brookfield has a network of more than 500 real estate sector specialists who are dedicated to sourcing income-generating assets and to delivering leading real estate and credit capabilities to individual investors.
To learn more, register and watch: The Potential Benefits of Private Real Estate Equity and Debt Amid Market Uncertainty.
Vaughan and Johnson will share their viewpoints on these key topics:
- Real estate outlook and opportunities among property types
- Defensive characteristics of real estate debt
- The value private real estate can provide to a client’s portfolio in today’s market environment
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Brookfield Asset Management is a leading global alternative asset manager with approximately $725 billion in assets under management across real estate, infrastructure, private equity, and credit. Brookfield Oaktree Wealth Solutions is the combined entity of Brookfield and Oaktree, a leading global investment manager with a differentiated expertise in credit. Brookfield Oaktree Wealth Solutions has become one of the largest alternative asset managers in the world, delivering superior investment results across real estate and credit strategies.