The Great “PropCo” Opportunity
January 4, 2022
We are on the verge of a major inflection point in PropTech land.
Specifically, there is an imminent wave of institutional capital flowing into “PropCo” structures — historically the demand for PropCo capital has been mostly limited to Family Offices, Real Estate firms, and a few esoteric Hedge Funds. However, as the use cases for PropCo structures become more prevalent (see case studies below), and historical PropCo investments become more liquid (i.e. recent Point Securitization), we are seeing more and more true institutions enter the fray.
Alpaca’s LP base includes some of the largest allocators globally. Many of our LPs are strategic in nature and their rationale for investing includes a desire to see unique deal flow in the form of PropCo structures, which they can allocate “traditional real estate capital” to, alongside our VC investment in the company’s OpCo.
This article originally appeared on Medium.com. Read the full article here.