Heitman Designs Home > Investment Strategies > Private Debt Providing insight and managing needs. English The Heitman Difference Investment Strategies About Careers Contact Login Login PRIVATE REAL ESTATE — DEBT Debt investing forms a key cornerstone of our history. We have been active in the debt market since our firm’s formation. As a multi-disciplined firm, Heitman is in a unique position to provide insight and strategic investment expertise to a range of clients seeking senior and mezzanine debt investment opportunities, including insurance companies, pension funds, banks, and individual investors. Process and strategy Our team's real estate experience combined with our long-standing history of managing debt investments for institutional investors allows the firm to be highly effective and responsive. Through the execution of our strategies, we strive to create value for our investors. Heitman’s investment process has been honed over the firm’s 50 years of participation in the real estate industry. Our firm possesses the full range of investment advisory capabilities and provides all of these resources to our clients. Ultimately, the underlying real estate drives outcomes within the portfolio. With resources and processes developed and enhanced over several decades of underwriting both real estate equity and debt across multiple real estate cycles, we believe we are uniquely qualified to understand and underwrite the risks inherent in investing in real estate debt. Extensive experience Our debt investment professionals have applied experience in public and private debt, acquisition, disposition, and securitization, as well as property and asset management. Our debt investment team taps into the insights and expertise of Heitman's complementary business units. The active management of our in-house asset management and loan administration professionals help us generate the desired outcome of our clients. Our professionals have invested across multiple economic recessions, periods of property market decline, and periods of recovery and expansion. While history never repeats itself exactly, we believe that knowledge of past cycles gives predictive power, which translates into sound, forward-looking investment ideas. Investment philosophy Heitman's philosophy for debt investments in real estate closely resembles that of our private equity investments. Our process is steeped in evaluating the fundamentals of a property and its sponsor seeking financing. We focus on the main characteristics of an investment, as well as any asset or market inefficiencies. We also conduct extensive risk management, both during the underwriting and asset management of an investment. We strive to achieve our clients’ investment objectives by adhering to sound real estate investment principles, and we add value by applying: ANALYSIS Our debt professionals focus on developing strategies, understanding market conditions, and influencing every step of the investment process with in-depth research. DISCIPLINE We are strategic in our investment process, identifying and pricing opportunities that are appropriate for the given stage of the market cycle. LEADERSHIP We leverage the extensive expertise gained across multiple cycles to anticipate opportunities and recognize risk. GLOBAL ASSETS UNDER MANAGEMENT 4.8 Billion in assets under management USD as of June 30, 2021 SOLUTIONS VEHICLES INSIGHTS Throughout our 50 years of experience investing in real estate debt, we’ve learned what works. As active participants in the industry, we anticipate and capitalize on market trends for our investors. We implement three primary strategies: Core/structured senior Designed for clients who seek investment in a diversified portfolio of senior, first mortgage loans secured by high-quality properties. A large percentage of the total return is generated by current income with low volatility. Value-added/mezzanine Designed for clients who seek investment in higher yielding, fixed-income alternatives produced by structured debt instruments or mezzanine loans secured by property. The income return can be more volatile, but the majority of the total return is generated by income. Opportunistic/high-leveraged debt Designed for clients who seek investments with high-return profiles. These investments can be highly leveraged and may include acquisitions of nonperforming loan pools or unrated securitized debt instruments. A large percentage of the total return is generated by appreciation with much higher volatility as a result. For more information on how to access these solutions, please visit the Vehicles page. © 2021 Heitman LLC. All rights reserved. Privacy General disclaimer