MLG Capital (MLG) is pleased to present the results of its Registered Investment Advisor (RIA) private real estate survey. During the second quarter of 2020, MLG Capital issued a nationwide RIA survey to determine the attitudes and appetites toward illiquid investments amidst our current economic environment. Based on the survey results, as well as insights gained through individual conversations with hundreds of RIAs over the years, several themes emerged.
MLG Capital (MLG) is pleased to present the results of its Registered Investment Advisor (RIA) private real estate survey.
During the second quarter of 2020, MLG Capital issued a nationwide RIA survey to determine the attitudes and appetites toward illiquid investments amidst our current economic environment. Based on the survey results, as well as insights gained through individual conversations with hundreds of RIAs over the years, several themes emerged.
Alternative investments are an important consideration regardless of market cycle, since they provide diversification.
- 100% of RIAs believe a High Net Worth (HNW) individual’s portfolio should be exposed to alternative investments in any market cycle.
- 58% of RIAs believe 6-15% of one’s portfolio should be allocated to alternative investments.
- 68% of RIAs expect alternative investments to produce between a 5-8% return.
Track record is most important consideration when choosing a real estate manager.
- RIAs ranked the following four factors in order of importance when choosing an asset manager: operating history, acquisition history, team tenure, personal connection
RIA and client interest in private real estate is strong.
- 55% of RIAs said that their clients specifically ask about private real estate.
- 71% of RIAs made a discretionary investment into private real estate in the last year (with 34% saying they made an investment in the last month or quarter).
Total returns and diversification are valued most in private real estate investment.
- RIAs recognize the many benefits of investing in private real estate but most valued total returns and diversification, followed by income tax benefits and low correlation to public markets.
Investment outlooks have changed and public market recovery is not expected in the immediate future.
- 59% of RIAs said the pandemic has changed their investment thesis/outlook.
- 34% of RIAs anticipate public markets returning to pre-COVID “normalcy” in 13-18 months, followed by 24% believing the return will be in 19-24 months.
Watch the webinar below for a summary of the results, along with MLG Capital’s view on the impact of COVID-19 on private real estate and our creative solutions for RIA clients.
MLG Marketing LLC, its representatives, employees, officer, directors, members, respective partners, agents and its affiliates (“MLG”) do not represent any recipient of this information and all statements made by MLG shall not be considered tax or legal advice. All recipients shall consult with their own tax or legal professional regarding the information presented.
This presentation contains information obtained from an MLG administered survey of a selected group of Registered Investment Advisors (“RIA”). MLG is sharing the information obtained from the RIAs for informational purposes only and recipients agree that MLG shall have no liability for any misstatement or omission of fact or for any opinion expressed herein. MLG Capital does not make any representation or warranty as to the accuracy or completeness of any information presented. Any financial information or projections may be initial estimates and may be subject to change without notice to recipient.