Global Management Survey
Proprietary research benchmarking the organizational, financial and governance metrics of real estate investment management firms.
The Survey has more than a decade of data collection and covers more than 65 individual data points, including, but not limited to:
Profitability:
YOY financial performance, EBITDA (pre- and post-bonus) margins, bonus pools, revenue and expense breakdowns, treatment of fund-level expenses.
Revenue:
Capital raising and net and gross AUM growth year-over-year, new commitment trends, investor composition by investor type, dry powder and leverage use, acquisition & disposition volumes and revenues, development pipeline.
2024 GLOBAL MANAGEMENT SURVEY
The 2024 Survey was completed by 82 companies between March and April 2024 – and reports on operational activity during 2023.
Just over 93% of firms have offices in the US, while 29% of firms are global and 23% have offices respectively in Continental Europe and Asia. The median firm had gross AUM of $7 billion, and managed 10 active funds. More than fournin 10 managers were diversified, while one quarter were core managers and one third high yield managers.
So, what were the key trends in 2024?
#1. margin pressure
Each year, the Global Management Survey provides detailed analysis on EBITDA performance, both pre-and post incentive. Following a year of low deal flow and slow capital raising, real estate investment managers faced growing expenses, with managers across every percentile reporting post-incentive EBITDA decreases compared to prior year performance.
#2. comp = 73% of expenses
In the 2024 GMS Survey, managers reported that compensation and incentives, including bonuses and LTIPs, accounted for 73% of all expenses. Salary and benefits represent 50% of expenses, with bonuses and long-term incentives making up the remainder. Occupancy costs are the second biggest expense representing 4% of annual expenses for real estate investment managers.
#3. AUM (gross & NET) growth
With stalling valuations and transactions in 2023, it was no surprise that AUM growth failed to materialize in the 2024 report. The median firm's net AUM stayed level YoY, while 53% of firms increased gross AUM and just 42% increase net AUM. Valuations played a key role in this story, as did capital raising with 78% of managers reporting fewer commitments YoY.
#4. Investor composition
Pension funds continue to represent the largest investor within the managers capital stack, accounting for 38% of capital commitments- followed by insurance companies on 21%. Banks come in third on 9% of capital commitments, while retail/HNW investors and sovereign wealth funds both represented 7% of commitments respectively.
2025 update:
NAREIM members participating in the Global Management Survey can access the full report through the Ferguson Partners member portal. NAREIM members can access a detailed executive summary through the link above. Note, access is restricted to designated personnel of NAREIM member firms only and Executive Officers. To get involved in 2025, email IvyLee Rosario.
Expenses & Org Metrics:
Headcount growth, employees per $1bn AUM and $10m of revenue by firm and strategy, employee breakdowns per function, per function and seniority. Workload metrics covering asset management (equity and debt); acquisition volume per officer (actual and forecasts). Outsourcing trends, span of controls, turnover and layoff rates, valuation policies.
Alternate years: Fund/Account T&Cs:
Target returns, asset management fees, acquisition & disposition fees, fee prevalence, promote/carried interest trends, promote catch-ups, GP co-investments, fund employees.
Alternate years: Governance:
Composition of executive committees, board of directors, management committees and investment committees; IC deal flow, voting and decision trends; SEC registration and audit frequency.
2023 GMS Survey RESULTS:
Out now
83 companies participated in the 2023 Global Management Survey, conducted between March and June 2023. Key takeaways included: