NEWPORT BEACH, CA—FINRA 1502 and the proposed DOL Fiduciary Rule have contributed to an industrywide slowdown in capital raise, but KBS Capital Markets Group, continues to demonstrate liquidity and performance in its closed and open offerings, Mick Manning, president and CEO of KBS the firm, tells GlobeSt.com.
As we recently reported, KBS has hired David DiDonato as a regional VP, supporting Southern California for the group. DiDonato has extensive experience as both a financial advisor and a wholesaler, most recently as a wholesaler for W.P. Carey in the Southern California market. We spoke with him and Manning about DiDonato's new role and challenges in financing CRE transactions in Southern California.
GlobeSt.com: David, what are you looking forward to accomplishing in your new role with KBS?
DiDonato: I'm eager to partner with financial advisors in Southern California to help position KBS's innovative suite of institutional-quality alternative investments, such as real estate and private equity, in its individual clients' portfolios. Now, more than ever, I believe alternative investments can be a critical component to investors' long-term success, and I'm thrilled to represent a firm that provides these investment options for advisors' clients.
GlobeSt.com: How has your experience as a financial advisor and wholesaler prepared you for this new role?
DiDonato: In my previous job, I represented a provider of commercial real estate solutions for growth and income in individual investors' portfolios. My prior experience has taught me how these offerings can effectively fit in an overall portfolio and how to communicate these complex investment strategies to financial advisors.
GlobeSt.com: What are the challenges in financing CRE transactions in Southern California today?
Manning: FINRA 1502 and the proposed DOL Fiduciary Rule have contributed to an industry-wide slowdown in capital raise, but KBS continues to demonstrate liquidity and performance in its closed and open offerings. As a result, we continue to raise capital with strategies that include opportunistic and value-add real estate as well as multi-manager private equity.
GlobeSt.com: Where are there untapped opportunities in financing these transactions?
Manning: KBS continues to be innovative in adapting to an ever-changing distribution world by reviewing or considering offerings with compelling structures, such as a perpetual life NAV REIT, a closed-end 1940 Act fund and Reg D offerings. These structures provide more cost efficiency, transparency and liquidity to the alternative investment space.
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Carrie Rossenfeld
Carrie Rossenfeld is a reporter for the San Diego and Orange County markets on GlobeSt.com and a contributor to Real Estate Forum. She was a trade-magazine and newsletter editor in New York City before moving to Southern California to become a freelance writer and editor for magazines, books and websites. Rossenfeld has written extensively on topics including commercial real estate, running a medical practice, intellectual-property licensing and giftware. She has edited books about profiting from real estate and has ghostwritten a book about starting a home-based business.
