In this episode, host Greg Dool sits down with Jonathan Brasse, PERE's real estate editor-in-chief, for a deep dive into one of the biggest forces transforming the private markets landscape: manager consolidation.

The discussion explores why private market managers across asset classes are acquiring or partnering with other businesses in a bid to scale up, and what that means for investors and the markets they serve. The conversation hinges on the release of PEI Group's Private Markets 2030, a series that takes a look at the major forces shaping the alternative assets industry.

Listen as Dool and Brasse unpack the shifts fuelling consolidation. Among increasing demands for diversification and transparency, they focus on a major change in the sources of capital that support managers. For three decades, private markets have been fuelled by institutional investors. But as these institutions reach target allocations, two other sources of capital – private wealth and insurance capital – have emerged, with both the appetite for private market exposure and the means to access it.

In this special episode, the team explores how synthetic risk transfers, a financial tool used by banks to help them free up capacity for more lending, are growing in real estate.

Join Real Estate Capital Europe editor Daniel Cunningham and deputy editor Lucy Scott as they discuss why an increasing number of real estate lenders – and real estate managers – are engaging in SRT trades, a topic also explored in REC Europe's deep dive here.

This episode comes as Aareal Bank confirms its first SRT trade, linked to a €2 billion portfolio of performing European commercial real estate loans.

Also read:

• Real Estate Capital Europe: Deep dive: How synthetic risk transfers are bringing banks and non-banks together

A multi-year slowdown in private real estate has prompted institutional investors to cut their average target allocation to the asset class for the first time in more than a decade. Is it merely a short-term setback for property fund managers, or a sign of a broader shift within institutional portfolios?

The historic reversal reported by Hodes Weill & Associates this week comes after the capital advisory firm had found a steady increase in average target allocations since 2013, when it began tracking them with an annual survey in partnership with Cornell University’s Baker Program in Real Estate. But those gains plateaued starting in 2022, and this year’s 10-basis-point dip suggests that the market effects of high interest rates, geopolitical concerns and the rise of other attractive alternative asset classes are far from over.

In this episode, PERE senior reporter Harrison Connery joins host Greg Dool to break down this year’s Allocations Monitor survey results, and contextualize the main takeaways. Hodes Weill co-founder Douglas Weill also shares his perspective on the results and what they might mean for private real estate fundraising moving forward.