Download This PaperLeverage in Private Equity Real Estate
36 Pages Posted: 6 Apr 2022
Date Written: March 17, 2022
Abstract
We review the scant academic literature on the use of leverage in institutional private equity real estate (PERE) investments and summarize a number of stylized facts. The bulk of available evidence supports the view that leverage, as used by high-risk PERE funds, does not adequately compensate limited partners for the risk that it adds.
Keywords: Real Estate, Private equity, Leverage
JEL Classification: E44, G11, G23, L85, R3
Suggested Citation: Suggested Citation
Sagi, Jacob and Zhu, Zipei, Leverage in Private Equity Real Estate (March 17, 2022). Kenan Institute of Private Enterprise Research Paper No. 4061210, Available at SSRN: https://ssrn.com/abstract=4061210 or http://dx.doi.org/10.2139/ssrn.4061210
Jacob Sagi (Contact Author)
University of North Carolina Kenan-Flagler Business School ( email )
Kenan-Flagler Business School
Chapel Hill, NC 27599-3490
United States
HOME PAGE: http://public.kenan-flagler.unc.edu/faculty/sagij/
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