In recent months, many top real estate investment professionals have left large institutional asset managers to pursue independent ventures. This wave of entrepreneurialism reflects a shift in how today’s talent views opportunity, favoring greater control, faster-paced environments, and stronger economic potential. Unlike the post-GFC era, when talent gravitated toward larger funds, these individuals are now launching their own firms or joining startups.
Here’s why this trend is accelerating:
1) Diminished Carry Value:
At most established fund managers, the value of carry has significantly decreased. Now is the optimal time to switch, with reduced switching costs and greater opportunity elsewhere.
2) Stagnant Growth Opportunities:
Many top dealmakers feel their personal and professional growth has plateaued. The once steep learning curve has flattened, prompting them to seek new environments where they can continue to thrive.
3) Increased Bureaucracy and Risk Aversion:
Larger institutions have become more conservative, prioritizing AUM protection over profit and growth. Star performers, used to fastpaced, high-reward environments, find this shift stifling.
4) Lack of Influence / Ownership:
Despite their significant contributions, there are only so many seats of influence at the top. As fourth woman or man out in a large organization, one may not have the same decision making and prefer to be at the top of another effort. In addition, some of these stars have felt like employees rather than business owners.
5) Economic Concentration at the Top:
Senior leadership isn’t leaving, and they’re perceived as holding onto economics, leaving little room for others to grow financially.
By way of example, Tyler Henritze (Town Lane), Russell Gimelstob (Ascendant), Olivia John (Osso Cap), Chad Pike (Makarora), Sush Talgator (Sagehall), and Billy Rahm (TBD) started new ventures.
Others, like Paisley Boney and Kyle Gardner, have left major firms like Rockpoint to pursue smaller-scale ventures, further highlighting this shift.
Joining real estate start-ups as part of existing managers are Marcos Alvarado (Sixth Street), Julian Salisbury(Sixth Street), Mike Ungari (SVP), Jesse Hom (Blue Owl), and Sam Friedland (Goldentree).
About Peak Perspectives by Highridge Search
We collect information from the field and aggregate it in short memos or comprehensive studies. Our goal is to provide you with the “pulse” of the market on topics such as talent development and retention, compensation, restrictive covenants, new team build-outs, lay-offs, and other human capital trends.
Be ready for short and sweet insights. Reach out if you need more from us! We are here to support the market and to help everyone grow their businesses with the right talent and alignment. darin@highridgesearch.com
