The real estate private equity space is witnessing a talent exodus with top dealmakers departing to set up their own funds, open consultancies and even join major property developers.
The trend underscores India’s resurgent realty sector post the pandemic, creating lucrative opportunities for enterprising professionals.
Notable recent departures in this niche specialised segment include Chanakya Chakravarty, who was with CDPQ’s Ivanhoe Cambridge; Sharad Mittal, former CEO of Motilal Oswal Real Estate, and Investcorp’s Ritesh Vohra, who has now assumed the role of a senior advisor at the firm.
“India is on the path of becoming a well-structured economy and becoming one of the top 3 global economies. Real estate sector will be a key contributor to this growth and recognising the potential, the government and regulators are also trying to support it with apt reforms and policies,” said Chanakya Chakravarti, former head of indirect investments, Asia Pacific, Ivanhoe Cambridge, the real estate arm of CDPQ.
He said formalisation of the realty sector will lead to a growth pattern similar to the one seen in the financial services over the last three decades.
After almost a decade with Motilal Oswal RE, Sharad Mittal as CEO of the fund has also embarked on an entrepreneurial journey with the vision of setting up a real estate-focused PE fund house through the new venture, ARNYA Real Estates Fund Advisors.
“The objective is to make a real difference in the real estate investment management business in India by being a real estate-focused independent fund manager and by leveraging our deep experience and track record. We are in the midst of taking various regulatory approvals for the establishment of our fund, Arnya Real Estate Fund – Debt,” Mittal said.
Avnish Singh, who spent over 11 years with Tishman Speyer; and Avinash Sule, co-head, and senior advisor with Jaguar Growth Partners with over 13 years at Qatar Investment Authority (QIA) had joined RMZ Corp to drive residential and warehousing business for the company.
According to industry experts, the exodus of top talent on the real estate fund side is across all top positions including senior vice president and director in addition to managers, with many new funds looking at India as a growth opportunity.
Anshul Lodha, Managing Director at Michael Page, anticipates the expansion of existing funds and the entry of Asian funds into the real estate PE segment to further drive demand for talent.
“Real estate private equity space is very niche in nature and there are many Asian funds and sovereign wealth funds looking for talents to set up India offices. We have mandates from numerous Asian-focused funds aiming to establish their leadership teams in India,” Lodha said.
India’s realty sector is estimated to reach a size of $1 trillion by 2030 and contribute over 18% to the country’s economy by the time. Apart from construction and development, financing of real estate is set to witness significant growth during these years and going forward.
“To succeed in the current environment, real estate funds must now focus on building a diverse portfolio with a tailored approach to meet local business needs. The funds that have been more flexible and forward-thinking have not only retained their talent but have also successfully attracted new talent from the market,” said Monica Agrawal, MD – financial services, Asia Pacific, Korn Ferry International.
An international property consultant’s former managing director, who recently resigned, said the Great Resignation is likely exacerbating recruitment and retention difficulties for funds.
“Losing a key team member can diminish expertise and resources, potentially hindering organisational growth and causing concern among investors,” he said.
Going ahead, retaining talents will become top priority for the real estate sector, especially in the PE fund business. According to industry experts, to stay competitive and fulfil the growing demand for higher returns, enhanced transparency, and new priorities such as environmental, social, and governance (ESG) performance, funds will have to look at ways to retain skilled professionals.
