#1. margin pressure

Each year, the Global Management Survey provides detailed analysis on EBITDA performance, both pre-and post incentive. Following a year of low deal flow and slow capital raising, real estate investment managers faced growing expenses, with managers across every percentile reporting post-incentive EBITDA decreases compared to prior year performance. ​

#2. comp = 73% of expenses

In the 2024 GMS Survey, managers reported that compensation and incentives, including bonuses and LTIPs, accounted for 73% of all expenses. Salary and benefits represent 50% of expenses, with bonuses and long-term incentives making up the remainder. Occupancy costs are the  second biggest expense representing 4% of annual expenses for real estate investment managers.

#3. AUM (gross & NET) growth

With stalling valuations and transactions in 2023, it was no surprise that AUM growth failed to materialize in the 2024 report. The median firm's net AUM stayed level YoY, while 53% of firms increased gross AUM and just 42% increase net AUM. Valuations played a key role in this story, as did capital raising with 78% of managers reporting fewer commitments YoY.

#4. Investor composition

Pension funds continue to represent the largest investor within the managers capital stack, accounting for 38% of capital commitments- followed by insurance companies on 21%. Banks come in third on 9% of capital commitments, while retail/HNW investors and sovereign wealth funds both represented 7% of commitments respectively.​​​​