As Investors Grow in Private Equity Real Estate, CrowdStreet Adds Visionary Fintech Leader to Accelerate Platform Growth and Innovation

Today, as stocks and bonds stumble due to inflation, rising interest rates, war and unrest, private equity commercial and multi-family real estate transactions continue to help investors to create and preserve their wealth. In his 2022 Investor Benchmark Survey, CrowdStreet found that 98% of respondents plan to make at least one real estate investment in private equity in 2022, while 65% plan to invest less in stocks and bonds.

Confirming this trend, last year CrowdStreet had its biggest investment year since its inception in 2014 – $1.2 billion invested by retail investors – and this year exceeded more than 100 transactions completed. Its private real estate offerings allow individuals to diversify their portfolios with private commercial and multi-family real estate transactions that would otherwise only be available to institutional investors and other insiders.

Further proof that investors have come to view private equity real estate as a worthwhile investment in these uncertain times is CrowdStreet’s transaction speed: since 2014, it has closed more than 645 real estate syndication deals online, of which 115 have been fully completed as of the date of May 2022.

“We were innovators when we brought CrowdStreet’s online marketplace to retail investors. , hotels, industrial and more. But to meet growing investor demand for strong private real estate opportunities, it is essential to continue to develop and implement breakthrough, cutting-edge products and solutions” , co-founder and CEO Torn Steen said. “Given their past accomplishments in innovative fintech and marketplace ventures, Jean Farda and Scott Macley will help us continuously evolve our investor and sponsor experience with our platform.”

Jean Farda refine and expand CrowdStreet’s flagship investment platform

Incoming product manager Jean Farda is responsible for demystifying, streamlining and improving the commercial real estate investment experience for individual investors, whether self-directed or prefer some level of advice. He draws on his experience in the transformation and growth of some of the best-known companies in the financial sector.

Most recently, Farda served as Managing Director of North America for global currency trading platform OANDA, where he led the growth United States and Canada. Prior to that, he was an executive at Fidelity Investments and E*TRADE, leading the development and optimization of fintech products for these two market leaders.

Farda will focus his team’s efforts on CrowdStreet’s technology Market, the online platform that allows investors to filter and search commercial real estate offers offered by real estate sponsors. As a two-sided marketplace that supports both investors and property developers, the aim is to refine and extend products and processes and make them easier and more efficient for both parties. stakeholders.

“Investors are increasingly demanding an easy-to-use platform that offers the widest range of technology-enabled commercial real estate investment options. We are already known as an industry leader for providing this experience, but as new technologies emerge, we see so many ways to take advantage of them and expand the potential and options for investors,” Steen said. “That’s why we look to John. He has already opened these paths at E*TRADE, Fidelity and OANDA. He has the know-how and creativity to develop and implement breakthroughs that will change the way sponsors structure deals and individuals invest in real estate.”

“I’ve spent most of my career helping retail clients participate in markets. Since sponsors are as critical to that equation as investors, I see my work at CrowdStreet as the next phase of that, which means anticipating needs and simplifying the journey for both groups,” said Farda. “We will make it easier for more investors to understand the benefits of having commercial real estate in their portfolios and streamline the investment process for sponsors.”

Scott Macley provide unified and focused leadership as CrowdStreet grows

New President, Marketplace Business Scott Mackley will lead capital markets, investments, strategic partnerships, marketplace operations, investor relations and inside sales. He brings over 25 years of financial industry experience with QuinStreet, Citigroup and Solomon Brothers and years of success advising high-growth fintech companies at similar stages and with similar opportunities.

Mackley will oversee all aspects of CrowdStreet’s private equity commercial real estate transactions, from prospecting and sourcing deals to preparing for their market launch and supporting fundraising. After funding, his team will oversee performance management and investor management. Private real estate transactions typically span multiple years from pitch to payment, so leadership needs to be both high level and granular. “Building a thriving market,” Mr. Mackley pointed out, “requires focusing over time on the success of both sides of the market, the sponsors and the investors.”

“CrowdStreet is already a market leader focused on delivering the highest quality offerings. But to realize the potential of our industry, we need to reach investors who should have commercial real estate in their portfolios but don’t. don’t understand investing or how to find and obtain the best possible products for their investment needs and goals,” said CEO Steen.

“We create options on our Marketplace so that people can find investment opportunities that really suit their needs and get in and out of them quickly and easily if they need or want them,” he said. added. “And Scott, who has built multi-hundred-million dollar marketplace businesses, has the expertise and insight to help us maximize that potential.”

Mackley said he was drawn to CrowdStreet because his experience showed him the potential for tech companies to disrupt legacy industries. “Commercial real estate investing continues to take an old-fashioned approach,” he said, “but CrowdStreet’s innovation is modernizing and democratizing the industry so more investors can take advantage of the wealth building benefits of this asset class.”

New recruits support CrowdStreet’s efforts to prepare for the future of investor adoption

Farda and Mackley bring cutting-edge ideas and front-line experience to a team of innovators already dedicated to building the best possible fintech platform for private equity real estate investing. Their addition comes at a time when forecasts predict continued volatility in the stock market. Yet commercial and multifamily real estate is emerging as an asset class relatively insulated from market volatility. With these two new leaders, CrowdStreet will be able to help accredited investors understand how adding private equity real estate to their portfolios can help them build and preserve their wealth.

About CrowdStreet: Since 2014, CrowdStreet has launched over 645 private equity real estate investment opportunities across the United States. Our community of investors has engaged more than $3 billion in investment dollars, of which more than $1.2 billion equity in 2021 alone. Based on performance of CrowdStreet’s 115 fully realized offers, investment opportunities on the platform achieved an average IRR of 17.7%. Some of the biggest sponsors in the world have used CrowdStreet to raise capital. CrowdStreet has always been named Best Real Estate Crowdfunding Site by Investopedia. More recently he was appointed Benzinga Alternative Investments Listmaker 2022 and recognized as one of America’s Top Startup Employers 2022 by Forbes and Statista. Learn more about

*As reported by Dr. Adam Gower in the best real estate syndication platforms | Gower Crowd – UNLEASHED, released in 2022, based on dollars raised by individual investors.

We calculate the IRR, or internal return, for individual trades made based on aggregate investor cash flows, using the XIRR function in Microsoft Excel and with reference to the effective dates of each individual investor’s capital contribution and the dates distribution by the issuer. The aggregate IRR of all completed transactions is based on the aggregated cash flows of individual completed transactions, as described above, and calculated similarly using the XIRR function. The IRR figures shown on this page are net of the most onerous fees charged to clients of CrowdStreet Advisors, LLC, our registered investment advisor subsidiary; an investor’s actual IRR on a realized investment may differ. We use a consistent methodology to calculate returns. However, in most cases, the relevant issuing entity provides the distribution information used for our IRR calculations. Although we take reasonable steps to verify this information, we cannot guarantee its accuracy.

Investing in commercial real estate involves substantial risks. You should not invest unless you can bear the risk of loss of capital, including the risk of total loss of capital. All investors should consider their individual factors in consultation with a professional adviser of their choice when deciding whether an investment is suitable. The direct and indirect purchase of real estate involves significant risks, including, but not limited to, market risks, land sale risks, and risks specific to any given property, which could include the potential loss of property value, potential foreclosure, changes in tax status and fees, and the costs and expenses associated with the management of such properties. All investors should consider the risks specific to that particular property before investing.

Allie Kuopus
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