Monthly Archives August 2015

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“The Mystique of Blackstone Real Estate Business Growth”

On August 26th, there was an article in the Real Deal about Blackstone, the giant and big conglomerate global investment and advisory firm, with huge concentration on many private eqPrivate Equityuity funds. Two days later I attended a small debt and equity forum and after the event a private equity guy (Mr. X is what I will refer him as) wanted to know my train of thoughts about Blackstone. Before I share my quick answer with you, there will be a link to the article at the end.

Mr. X: How are you? I noticed you asked a question during our short intermission about the current state of the economy due to devaluation of the Chinese yien...

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Which Part Of The Capital Structure Should You Lean On (Part I)?

Real estate investments have a common capital structure (stack) that can either be simple or slightly complex. A capital stack with just equity or a first mortgage and equity is not very complex, yet there are still risks involved. The more sophisticated the firm is the more highly structured its real estate investment assets and capital stack tend to be.

Table 1 below shows a simple capital stack.
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Equity
First Mortgage

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In this case the first mortgage has priority, first lien position against the asset that secures the debt instrument...

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