Bonaventure’s Chief Growth Officer argues that one-size-fits-all approaches are misaligned with investor needs.
The real estate investment industry’s tendency to offer standardized products is failing to meet the diverse needs of investors, according to Mike Auerbach, Chief Growth Officer at Bonaventure. “Every client is different. Some people want appreciation, some people want cash flow, some people want professional management, it’s super client specific, but we are not a firm that is offering a blank, just a generic opportunity for people,” Auerbach says.
According to Auerbach, many investment firms have prioritized scalability over suitability, leading to a proliferation of generic investment products. “A lot of people put out products that are just better for the sponsor… But there’s a lot of challenges in this space on determining what people want,” he explains.
This approach, he argues, stems from firms focusing more on asset aggregation than true investment management. “That’s the difference between being like an asset aggregator and a real asset manager and advisor,” Auerbach notes.
The solution, according to Auerbach, lies in taking a more consultative approach to investment offerings. “We are trying to solve a solution for what that person wants,” he says. “By taking that approach, we’re able to sit down with people, help them plan what’s best for them, and if we’re not the group that has a solution for them at this point in time, we’re comfortable saying that.”
This commitment to client-specific solutions extends beyond just investment selection. Auerbach emphasizes the importance of comprehensive support throughout the investment process: “It is a heavy lift to explain everything to a potential client, go through the due diligence process, do everything. It’s a lot of hand holding.”
While acknowledging the complexity of delivering customized solutions at scale, Auerbach sees this as a necessary evolution for the industry. “I don’t know if there’s a group that’s been successful out there to create a repeatable, scalable option yet. That’s kind of the challenge,” he says.
As the firm develops new products and partnerships, Auerbach emphasizes maintaining this focus on client needs rather than institutional convenience. “We’re looking to put products out there in the market where people have the needs,” he explains. “It’s our job to give people products that ease their pain and create more solutions.”
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