Bluerock Announces Launch of Institutional Division, Taps Industry Veteran Doug Kinney to Spearhead Initiative
New York, NY (November 14, 2023) – Bluerock, a leading alternative asset fund manager, announced today that it is expanding into institutional distribution and that it has appointed Doug Kinney to the role of Managing Director, Head of Institutional Capital to spearhead the initiative. Mr. Kinney will be responsible for directing the company’s institutional channel, building on the firm’s formidable investment capabilities and track record.
Mr. Kinney brings more than 25 years of experience to the role, including senior leadership positions at The Carlyle Group, Greenhill & Co., Credit Suisse Real Estate Private Fund Group, Heitman/PRA Securities Advisors, Heitman/JMB Realty Corporation, Invictus Capital Partners, and BentallGreenOak.
“The addition of Doug Kinney to the team positions us well to execute on this critical next phase of growth, said Ramin Kamfar, CEO and founder of Bluerock. “Doug brings the energy, insight, and institutional industry experience to build this new business vertical, capitalizing on Bluerock’s established record of investment success across multiple strategies and multiple cycles,” Mr. Kamfar adds.
The company’s entry into the institutional channel is supported by a solid investment track record. Over the last 15 years, Bluerock has delivered a gross IRR of 25.1% and a MOIC of 2.1x across $8.4 billion of multifamily investments, representing 126 full-cycle transactions throughout the capital stack, including equity, preferred, mezzanine and debt positions.¹ Further enhancing its record, Bluerock led the sale of its multifamily REIT, Bluerock Residential Growth REIT, at the height of multifamily market pricing in December 2021, delivering the #1 Total Shareholder Return (TSR) among all 170+ REITs for the 1-year, 2-year, 3-year and 4-year periods, as well as the highest REIT transaction premium in history.² Bluerock has delivered similar market leading results in its fund business, with its flagship Bluerock Total Income+ Real Estate Fund generating the highest risk-adjusted return or Sharpe Ratio (a measure of risk-adjusted return) among all 5,883 domestic funds tracked by Morningstar since inception (A-share, TIPRX).³
In the past five years, Bluerock has raised north of $9.5 billion through a robust retail platform, earning it a position as a leading capital raising firm focused on intermediary distribution. Bluerock’s product offerings include a suite of in-demand sectors across both real estate and credit sectors, including both residential equity and debt and industrial equity in terms of direct real estate, alongside diversified core plus real estate, senior secured loans, and real estate credit strategies in the fund space.
¹ The summary above is not indicative of any specific investment offering and is before any specific investor-level and/or offering-level fees and expenses but after any joint venture promotes and returns, if any. Past performance is not necessarily indicative of future results. IRR represents net internal rate of return (IRR) on a property level across all sold properties. IRR is a common financial metric that produces the compound annual rate of return of an investment utilizing discount rate and net present value formulas. MOIC represents the total return per dollar of equity invested on a property level.
² Source: KeyBanc, September 2022. BRG shareholder 145% premium is based on the unaffected closing stock price on September 15, 2021, the date prior to a media article reporting that BRG was exploring strategic options including a sale. BHM current implied Net Asset Value estimated of $5.60 is based on the midpoint of the valuation range provided by Duff & Phelps, independent financial advisor to the Company’s board of directors. There can be no assurance that the trading price upon a listing of BHM will be equal to or greater than this estimated NAV.
³ Source: Results reflect the A share, the Fund’s longest running share class. Source: Morningstar Direct, annualized Sharpe based on daily data from 10.22.2012-9.30.2023. Using Morningstar data compiled by Bluerock Fund Advisor, LLC, the Fund (TIPRX, no load) generated the highest Sharpe since inception among 5,883 open end, closed end, and exchange traded U.S. mutual funds, respectively. Sharpe Ratio is only one form of a performance measure.
Bluerock is a leading institutional alternative asset manager based in New York with regional offices across the U.S. Bluerock principals have a collective 100+ years of investing experience with more than $120 billion real estate and capital markets experience and manage multiple well-recognized real estate private and public company platforms. Today Bluerock has more than $15 billion in acquired and managed assets and offers a complementary suite of public and private investment programs, with both short and long-term goals, to individual investors seeking solutions aimed at providing predictable income, capital growth, and tax benefits.
About Bluerock Residential Growth REIT
Bluerock Residential Growth REIT, Inc. was a previous real estate investment trust that focused on developing and acquiring a diversified portfolio of institutional quality highly amenitized live/work/play apartment communities in demographically attractive knowledge economy growth markets to appeal to the renter by choice. BRG’s objective was to generate value through off-market/relationship-based transactions and, at the asset level, through value-add improvements to properties and operations.
About Bluerock Total Income+ Real Estate Fund
The Bluerock Total Income+ Real Estate Fund offers individual investors access to a portfolio of institutional real estate securities managed by top-ranked fund managers. The Fund seeks to provide a comprehensive real estate holding designed to provide a combination of current income, capital preservation, long-term capital appreciation and enhanced portfolio diversification with low to moderate volatility and low correlation to the broader equity and fixed income markets. As of Q3 2023, the value of the underlying real estate held by the securities in which the Fund is invested is approximately $363 billion, including investments managed by Ares, Blackstone, Morgan Stanley, Principal, Prudential, Clarion Partners, Invesco and RREEF, among others. The Fund utilizes an exclusive partnership with Mercer Investment Management, Inc., a leading advisor to endowments, pension funds, sovereign wealth funds and family offices globally, with over 3,300 clients worldwide, and over $17 trillion in assets under advisement and $354 Billion of Assets Under Management (Source: Mercer Investments, LLC as of March 2023. Mercer’s Assets Under Advisement are derived from a variety of sources, including, but not limited to, third-party custodians or investment managers, regulatory filings, and client self-reported data. Mercer’s Assets Under Management include Mercer Investments LLC and global affiliates and may differ from regulatory filings).
Investors should carefully consider the investment objectives, risks, charges and expenses of the Bluerock Total Income+ Real Estate Fund. This and other important information about the Fund is contained in the prospectus, which can be obtained at bluerockfunds.com. The prospectus should be read carefully before investing.
A significant portion of the Fund’s underlying investments are in private real estate investment funds managed by institutional investment managers (“Institutional Investment Funds”). Investments in Institutional Investment Funds pose specific risks, including: such investments require the Fund to bear a pro rata share of the vehicles’ expenses, including management and performance fees; the Advisor and Sub-Advisor will have no control over investment decisions may by such vehicle; such vehicle may utilize financial leverage; such investments have limited liquidity; the valuation of such investment as of a specific date may vary from the actual sale price that may be obtained if such investment were sold to a third party.
Additional risks related to an investment in the Fund are set forth in the “Risk Factors” section of the prospectus, which include, but are not limited to the following: convertible securities risk; correlation risk; credit risk; fixed income risk; leverage risk; risk of competition between underlying funds; and preferred securities risk.
Limited liquidity is provided to shareholders only through the Fund’s quarterly repurchase offers for no less than 5% of the Fund’s shares outstanding at net asset value. There is no guarantee that shareholders will be able to sell all of the shares they desire in a quarterly repurchase offer. Since inception, the Fund has made 43 repurchase offers, 36 have resulted in the repurchase of all shares, and seven have resulted in the repurchase of less than all shares tendered. In connection with the August 2023 repurchase offer, the Fund repurchased 37.403% of all shares tendered. Quarterly repurchases by the Fund of its shares typically will be funded from available cash or sales of portfolio securities. The sale of securities to fund repurchases could reduce the market price of those securities, which in turn would reduce the Fund’s net asset value.
The ability of the Fund to achieve its investment objective depends, in part, on the ability of the Advisor to allocate effectively the Fund’s assets across the various asset classes in which it invests and to select investments in each such asset class. There can be no assurance that the actual allocations will be effective in achieving the Fund’s investment objective or delivering positive returns.
An investment in shares represents an indirect investment in the securities owned by the Fund. The value of these securities, like other market investments, may move up or down, sometimes rapidly and unpredictably. The Fund is “non-diversified” under the Investment Company Act of 1940 and therefore may invest more than 5% of its total assets in the securities of one or more issuers. As such, changes in the financial condition or market value of a single issuer may cause a greater fluctuation in the Fund’s net asset value than in a “diversified” fund. The Fund is not intended to be a complete investment program.
The Bluerock Total Income+ Real Estate Fund is distributed by ALPS Distributors, Inc (ALPS). Bluerock Fund Advisor, LLC is not affiliated with ALPS.
Sharpe Ratio: Measurement of the risk-adjusted performance. The annualized Sharpe ratio is calculated by subtracting the annualized risk-free rate – (3-month Treasury Bill) – from the annualized rate of return for a portfolio and dividing the result by the annualized standard deviation of the portfolio returns. You cannot invest directly in an index. Benchmark performance should not be considered reflective of Fund performance.
An open-end fund is a type of mutual fund that does not have restrictions on the amount of shares the fund can issue. The majority of mutual funds are open-end, providing investors with a useful and convenient investing vehicle. Shares are bought and sold on demand at their net asset value (NAV), which is based on the value of the fund’s underlying securities and is calculated at the end of the trading day.
A closed-end fund is organized as a publicly traded investment company by the Securities and Exchange Commission (SEC). Like a mutual fund, a closed-end fund is a pooled investment fund with a manager overseeing the portfolio; it raises a fixed amount of capital through an initial public offering (IPO). The fund is then structured, listed and traded like a stock on a stock exchange. Unlike open-end funds, closed-end funds trade just like stocks. While open-end funds are priced only once at the end of the day, closed-end funds are traded and priced throughout the day. Closed-end funds also require a brokerage account to buy and sell, while an open-end fund can often be purchased directly through a fund provider.
An ETF, or exchange-traded fund, is a marketable security that tracks a stock index, a commodity, bonds, or a basket of assets. Although similar in many ways, ETFs differ from mutual funds because shares trade like common stock on an exchange. The price of an ETF’s shares will change throughout the day as they are bought and sold. The largest ETFs typically have higher average daily volume and lower fees than mutual fund shares which makes them an attractive alternative for individual investors.