So many real estate advisors looking for new allocations to stay afloat, so many lackluster or worse returns to find in legacy funds, so much capital looking for yield, and so much of that money going only to the top performing fund managers while the also-rans run out of time.

The real estate advisory business has never experienced such a period of survival of the fittest where past performance is determining the winners and losers in cut throat fashion. General partners and fund managers with historical top quartile returns can almost take orders and rake in capital while funds with mediocre records or worse cannot raise a dime. Newcomers do not fare much better. What do consultants have to gain by recommending untested managers to their risk-adverse pension clients when they can comfortably point to proven advisors and GPs? Nothing! And their typical clients—bureaucrat state pension officers—have everything to lose by not following the advice of consultants, who they hired to give them cover.

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