Q&A: Heron Finance’s private real estate investing strategy
Learn how we built the Heron private real estate investing strategy and what types of assets the strategy gives you exposure to.
We recently launched our new private real estate strategy offering exposure to over 70 assets from three experienced fund managers who collectively manage greater than $300 billion in aggregate real estate AUM.
To help you decide if the strategy is a good fit to add to your Heron portfolio, we’ve compiled the most common questions we hear from investors looking to invest in real estate.
Q: How did Heron select the funds in the strategy?
We conducted in-depth due diligence on dozens of private real estate funds, evaluating each against our proprietary scoring model. Our criteria included considerations such as management expertise and track record, risk/return profile, portfolio construction and diversification, vintage years, and alignment with current macro trends. Our inaugural portfolio holdings—PGIM Real Estate Fund Inc, Starwood Credit Real Estate Income Trust, and North Haven Net REIT—were selected for their experienced management teams (40+ years average), disciplined underwriting, and positioning in high-growth sectors like logistics, data centers, and senior housing.
Q: Does the strategy invest primarily in institutional funds and REITs?
Yes. We currently invest primarily through non-traded REITs. These vehicles provide broad exposure to diversified real estate portfolios managed by some of the largest real estate investment firms in the U.S.
Q: Does the strategy invest in any stand-alone loan offerings or property?
No. The program currently focuses on diversified fund portfolios rather than individual assets. You're getting exposure to fund portfolios—not cherry-picked loans or properties.
Q: What property types does the strategy target?
Our initial focus is funds that invest in industrial (logistics, data centers, last-mile fulfillment) and/or residential (senior housing, affordable housing) real estate. We believe both offer compelling fundamentals and yield profiles in this market environment.
Q: Does the strategy exercise any control over the underlying properties?
No, Heron is neither property lender nor property owner—we don't control underlying real estate investments and we do not have influence over the third-party fund managers.
Q: Can I migrate my current Heron positions into the real estate strategy?
Yes, subject to liquidity of your existing positions. That said, it's generally faster to allocate new capital to the new strategy than to move capital from an existing strategy.