Rough Stretch for Real Estate. Time to Invest?

A closed-end fund that buys an asset at a steep discount and marks it up looks like a hero. In an evergreen fund, that same trade can be a problem. New investors buy in at the higher price, and if the asset doesn't keep compounding from there someone gets left holding a bad position. Michael Elio, Partner at StepStone Group, breaks down the discipline that separates evergreen funds built to compound from funds built to gather assets.

Listen to the episode.

Real estate, crypto, private credit, software. Pick a down category and it’s probably on someone’s watchlist right now.

We polled 201 Long Angle members asking which down or out-of-favor asset classes / sectors would you consider buying?

Real estate was number one by far at 46% of respondents, followed by software equities, private credit, and crypto. 

Real estate’s downturn has been the longest yet least dramatic. In the Long Angle discussion thread, one member called it "a great time to buy real estate in select markets where the supply/demand dynamic is healthy." Others are skeptical, questioning whether it’s worth holding through a slow recovery given how long the capital gets tied up.

Software drew the second-most interest, with several pointing to more attractive valuations and pushing back on the idea that AI will completely replace SaaS. Private credit's case is simple: higher rates have pushed yields to levels now competitive with equity returns. 

For crypto, several members downplayed the current drawdown as part of a typical 4-year cycle. 

Curious what others are thinking? Join the conversation. 

Family wealth researcher Kristin Keffeler has spent 20 years studying this question. Her diagnosis: most parents make mistakes out of love, which is why they’re so hard to recognize. 

Five common mistakes made by wealthy parents stand out. Each either strips away a developmental experience the child needed, or attaches shame and confusion to money.

1) Sharing specific financial information too early, without the context to understand it. Numbers become a measuring stick before kids have the context to make sense of them.

2) Waiting too long to say anything. Deferring the conversation until children are older, or until a major wealth event occurs, leaves them without the education to manage it.

3) False scarcity. Pretending the family has less than it does, or living as if wealth does not exist, creates shame and confusion.

4) Overly permissive access. Handing over full access to wealth before someone has the skills to manage it removes the practice that builds competence.

5) Overly controlling from fear. Parents worried about wealth harming their kids can become so restrictive that the child reaches adulthood without autonomy.

Read the full framework in our HNW Insights Blog.

Infrastructure investing is the ownership of physical assets that provide essential services to people and economies. These include power generation and transmission, transportation, water, communications, digital infrastructure such as data centers and fiber networks, and social facilities like hospitals. 

Infrastructure investments typically generate stable, long-term contracted or regulated cash flows, making them an income-focused allocation that is resilient through economic cycles.

Infrastructure's most distinctive benefits for investors include:

Infrastructure's low correlation combined with roughly 10% annualized returns and a significant yield component make the asset class worth considering for any portfolio.

Read Long Angle’s Infrastructure Investment Guide to learn more about the sectors, stages of development, strategies, and reasons to invest.

A note from Hilary Catton, Head of Community Engagement at Long Angle. 

Every other week, I bring together a room full of strangers who are not about to be strangers anymore.

I get to meet founders and operators, people navigating major life transitions, and people who've been building businesses for decades. Members join from all over the world with different backgrounds, accents, and stories, but they all show up with the same intention: 

To be curious, meet great people, and see where the conversation leads.

Watching our members make connections they likely never would have made otherwise is easily my favorite part of the job. I'm looking forward to meeting this week's new members, hearing what brought them to Long Angle, and helping them build relationships that continue long after the welcome call ends!

Join the trusted community for navigating wealth. Nearly 9,000 members strong. 0 membership fees.

Learn more about Long Angle. 

Chris Bendtsen

Insights Lead, Long Angle

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