Video: a fireside chat on deals, family offices and housing

The conversation covers family office insights and housing innovation. The title also points to eleven billion dollars in deals as the backdrop for the discussion.

What the conversation covers

Sponsors raising equity for housing projects usually work from a private placement memorandum and an operating agreement. Family offices read those papers against return targets, often an 8 percent preferred return with a 70/30 split above it. Lenders add a coverage ratio near 1.25 and a loan to cost ratio around 65 percent. Structure matters. A single waterfall clause can shift an investor’s equity multiple by a tenth of a turn, so family offices tend to study each term sheet line by line before any commitment is made.