Goldman clients are giving Cadre $250 million to pour into commercial real estate

TechCrunch | 1/10/2018 | Connie Loizos
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Cadre, a three-year-old, New York-based online platform helping accredited investors delve into commercial real estate deals in what it claims is a far more transparent way, has received a big vote of confidence from Goldman Sachs.

According to CEO Ryan Williams, Goldman’s private wealth clients are committing $250 million to the platform, money that will get funneled directly into a portfolio of real estate stakes assembled by Cadre.

Move - Surprise - Reasons - Cadre - Ties

The move isn’t a complete surprise for numerous reasons, beginning with Cadre’s ties to Goldman. Williams spent a couple of years at the bank right after getting his undergraduate degree from Harvard. Goldman also participated in the company’s $65 million Series C round, which was led by Andreessen Horowitz and closed last summer.

Cadre, which was cofounded by Joshua and Jared Kushner, has also been amassing a star cast of executives, including, most notably, Michael Fascitelli, formerly the CEO of Vornado Realty Trust. Fascitelli, who’d written an early seed-size check to Cadre, took over Cadre’s investment committee as its chair and senior adviser a year ago and he now approves all deals.

Cadre - Starwood - Capital - Group - Executive

In 2016, Cadre hired former Starwood Capital Group executive Marcos Alvarado as its head of acquisitions and business operations, which Goldman’s tony clients presumably like, too.

Either way, for Cadre — which invests directly in real estate assets, then passes its investment on to its clients for an upfront fee and a recurring subscription rate — the tie-up is a major coup. Not only does Cadre benefit from brand association with Goldman, but Goldman’s investor pool helps it move into new phases of its business, one of which seems to be creating a secondary marketplace.

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