EP. 37 // From Fund Formation Attorney to an Emerging Real Estate Fund Manager w/ Greg Katz
On today’s episode we have the co-founder and managing partner of Atlis Real Estate Partners and lawyer Greg Katz, out of Philadelphia, Pennsylvania. Greg is an absolute wealth of knowledge having started his career on the legal side of fund formation, being a part of over one billion dollars of funds raised before switching over to starting his own fund. On this episode of the podcast, Greg talks about his journey from law to starting his own fund, the importance of personally fostering your own network in the world of deal sourcing and fundraising, and how conservative underwriting is the foundation of finding success in a turbulent market.
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Key Points from This Episode:
Greg got his start in law, working on private investment funds. He worked on fund formation and private equity. He generally enjoyed working in law, and wasn’t looking to get out. When he was pitching a client, that client pitched to him to become business partners. That was now his current partner, and they’ve since raised their first fund, raising $6,000,000 for their multi-family value add fund.
They’re currently raising funds for an industrial deal.
Greg has raised well into the billions in nearly every type of fund that exists. He cites fostering his network and working closely with his partner Aaron. David notes you don’t want to partner with someone who’s exactly like you; you want to find someone with complimentary skills and strengths.
Greg’s market is fragmented with a lot of mom and pop owners. Unlike the typical returns of 8 - 12%, you get a heavy discount from fire sales. This hands-on approach to sourcing deal flow is nearly impossible through crowd funding platforms.
Atlis Real Estate adjusts for risk by being incredibly conservative across their entire underwriting process. There is very stringent criteria about projected IRR.
Greg’s focus is on workforce housing in Philadelphia; value add, mom and pop owners that have mismanaged their property.
Relevant Links from Today’s Episode:
ABOUT GREG KATZ
Greg Katz graduated with honors from both Elizabethtown College (2011) with a BA in Business Administration and Economics and Villanova University School of Law (2014). Greg started his professional career at Klehr Harrison Harvey Branzburg LLP where he concentrated his practice on representing private investment funds on their formation, fundraising and deal-related matters as well as general corporate and compliance matters. During this time, Greg particularly specialized in representing regional and national real estate fund managers in the formation of private real estate funds ranging from $10 million to $600 million in capital commitments. Greg then lateraled to Troutman Pepper Hamilton Sanders LLP where he continued his representation of private investment funds, as well as institutional limited partners in their investments of $50 million or more in private funds, but also expanded his practice to include private equity merger and acquisition transactions generally ranging from $20 million to $200 million as well as venture capital financings.
Greg is now a founder and managing partner at Atlis Real Estate Partners. Atlis had its initial closing 1 year ago and has raised one value-add multifamily fund and has made six acquisitions. Atlis is also undergoing two new offerings for an industrial warehouse and a build to rent community in Pensacola, Florida.
