Pro invest How To Launch A Private Equity Real Estate Fund Case Solution

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*1 being the highest and 5 being the lowest. 

2. The option of the Initial public offerings seems to be a reasonable choice among the given funding choices available to Pro – Invest. The IPO has scored the least score in the above table meaning that it has the highest ranking in most of the criteria’s established by Sabina. The UHNWI is ensuring the availability of funds but demands substantial control but the investment will be as per his terms. This does not go along with investor fit for Pro – invest moreover since the UHNWI would not be able to add any value in the investment on account of his limited knowledge (Worth, 2020). In this regard, it would not be a suitable funding option for pro – invest. The mezzanine investment from an international investment firm requires a seat in the investment committee team which would dilute the control of or – invest in decision making. Also, the principal of the firm in Australia had little knowledge of the hotel industry thereby adding very little value. Moreover, mezzanine financing is more expensive than the tradition debt financing (Chris, 2019).

The Australian investment house providing investment through project pony demanded an equity stake in the company. Their ability to raise funds through private placement was also questionable. Moreover, the placement agent does hold the ability to add any value in the day-to-day business of the firm. The managed account through a pension fund is willing to provide investment in the range of AUS$300 – AUS$500 Million but required the approving power to veto each opportunity for investment. The approving power for investment dilutes the control of the private equity firm thereby generally not desired by the PE firms (Cleartax, 2020).