CohnReznick combines deep experience in both the real estate and financial services sectors to help emerging, experienced, and institutional real estate fund managers – and their investors – achieve their vision. Our specialization in both the real estate industry and in servicing real estate funds provides us with an understanding of the practical considerations, best practices, and nuances involved across the full lifecycle of such an investment fund, from formation to startup, initial fund-raising, the investment period, dispositions, and liquidation.
Given the constant competitiveness of the capital-raising environment, investors are overwhelmingly attracted to fund managers with a demonstrated track record and the ability to manage the fund’s operational infrastructure.
Emerging managers may come to market with verifiable past performance statistics, but usually need assistance building their business plan, preparing for capital raising, choosing service providers, selecting the right fund structure, calculating market-acceptable fees, developing terms and conditions, and addressing regulatory, tax, and environmental, social, and corporate governance (ESG) considerations.
For established managers, outside of achieving their investment objectives, it is most important to rightsize infrastructure and service providers based on the growth and complexity of the fund and its underlying investments. This group will also increasingly be expected to maintain and grow their efforts around ESG.
Our team is experienced in assisting both emerging and established fund managers with these various needs. Our practitioners are also available to discuss issues such as valuation methodology, admission of new limited partners, carried interest computations, and joint venture (JV) operating partners.
EXPERIENCED PERSPECTIVES ON BOTH REAL ESTATE AND INVESTMENTS
CohnReznick’s Commercial Real Estate (CRE) industry practice is one of the largest of its kind among national accounting firms in the U.S., serving clients in all 50 states. Our dedicated professionals offer a broad knowledge and keen understanding of the nuances of real estate companies and their operations, the underlying fundamentals of real estate across varied property sectors, and the most current and topical technical accounting, tax, and business issues that impact the CRE industry.
COMMERCIAL REAL ESTATE INDUSTRY PRACTICE OVERVIEW
Our broad range of services and client base cover many diverse property types and organizational structures, including:
- Student housing
- Workforce housing
- Assisted living
- Affordable housing
- Data centers
- Land development
In addition to their mastery of real estate construction and development, management, and operating issues, our national Real Estate team understands the fund management business and its reporting, and compliance intricacies.
To best support our real estate fund clients, our Real Estate professionals work in tandem with our Financial Services team. Our Financial Services group specializes in providing services to:
- Domestic and off-shore real estate funds, private equity funds, private debt funds, hedge funds, venture capital funds, fund of funds, and other alternative investment funds
- Registered Investment Advisors (RIAs)
- Investment management companies
- Securitization conduits
- Small Business Investment Companies (SBICs)
- Family offices
Our clients’ funds are invested in traditional equity and debt securities, as well as a variety of financial instruments and other vehicles, including:
- Alternative assets such as life settlements, solar energy credits, lottery financing, and loan origination
- Commercial and residential real estate
- Derivative financial instruments
- Distressed securities/bank debt
- Foreign securities
- Illiquid investments
- Portfolio companies
- Traditional domestic debt and equity securities
- Other investment partnerships (funds of funds)
As a leading national public accounting firm, CohnReznick is recognized by accredited investors and the pension and institutional investor community, and is registered with the Cayman Islands Monetary Authority (CIMA).
Our professionals are actively involved in associations, organizations, and regulatory bodies that influence and affect the real estate industry, such as the National Council of Real Estate Investment Fiduciaries (NCREIF) and Nareit, the National Association of Real Estate Investment Trusts.
- Audit of financial statements for hedge funds, fund of funds, private equity funds, venture capital funds, RIAs, and broker-dealers
- Audit of Form 468 for SBICs
- Audit of Internal Controls over Financial Reporting SOC 1 (SSAE 16)
- Audit of securitization conduits
- Consultation on and review of fund offering documents
- Domestic and international tax planning and entity structuring
- Monitoring and compliance with SEC and other regulatory bodies’ regulations
- Optimizing tax efficiency of an investment vehicle
- Performance examinations
- Preparation of partnership tax allocations
- Preparation of tax returns and partners’ Schedule K-1s
- Reporting under U.S. GAAP and International Financial Reporting Standards (IFRS)
- Surprise examinations to comply with Rule 206-4(2) under the Investment Advisers Act of 1940
- Structuring advice in relationship to cross-border tax issues, as well as assistance with withholding tax compliance
Emerging Managers Resource Guide