Cadre (company)

From Wikipedia, the free encyclopedia
Jump to navigation Jump to search
RealCadre LLC
Private
IndustryFinancial technology
Real estate
Founded2014; 5 years ago (2014) in New York City, New York, United States
FounderRyan Williams
Jared Kushner
Joshua Kushner
Headquarters,
Number of employees
Over 100
Websitecadre.com

Cadre is a New York-based technology company that provides individuals and institutions direct access to large commercial real-estate properties.[1] The business and financial press describe it as a service that "makes the real estate market more like the stock market" by allowing investors to select the individual transactions in which they participate, while investing a smaller amount than would be required to fully fund a transaction.[1] For example, 12 institutional investors (such as family offices and endowments) participated in a $60 million office building purchase.[2] The firm has more than $1 billion under management,[3] and was named to Forbes' "FinTech50".[4] In 2018, a partnership with Goldman Sachs was announced through which Goldman Sachs' private wealth clients committed at least $250 million (USD) real estate investments through Cadre.[5][6] The company also offers a managed portfolio service and a real estate secondary market.[7]

History[edit]

Cadre was founded in 2014 by CEO Ryan Williams, who previously built a real estate business and worked at Blackstone and Goldman Sachs.[8] He started the company with Thrive Capital founder Josh Kushner, and General Catalyst, which together invested $18 million in a 2015 fundraising round.[9] That round also included a $250 million backstop liquidity commitment from an unnamed family office.[1] Vornado CEO Michael Fascitelli also invested in this round and joined the board. Jared Kushner helped launch the business with Williams, and advised the firm for approximately 18 months.[1]

Williams was named one of Forbes' "30 Under 30" for 2018.[10][11][12] Former Vornado Realty Trust CEO Michael D. Fascitelli leads the investment committee.[13] Other team members were hired from Silicon Valley firms, such as head of product Andrew Borovsky from Square, Inc.,[1][14] and the former head of engineering from Mint.com.[14]

In 2016, the firm raised another $50 million, which included Michael Fascitelli joining Cadre's investment committee.[15][16] In 2017, it was named an "Inc. New York start-up to watch",[17] to Equities.com's Pioneer 250,[18] and to Fast Company's "5 FinTech startups to watch".[14] The firm raised an additional $65 million in 2017 in a round led by Andreessen Horowitz.[19] A 2018 deal permits private wealth clients of Goldman Sachs to invest through the Cadre platform.[5]

In early 2018, it was reported that leaders of the company planned to expand their service offering to include residential real estate loans. The article was later updated to clarify that the new business will involve investing in loans issued by others.[20]

In 2018 the company announced the "Cadre Secondary Market," which permits users to sell positions after a one-year holding period. It also announced the "Cadre Managed Portfolio" service, which allows users to create a diversified account with a $250,000 minimum.[21]

In late 2018, the company launched an opportunity zone fund based on tax changes established in the Tax Cuts and Jobs Act of 2017, which were designed to encourage investment in low-income areas. Investors who invest in qualified projects and meet holding-period requirements face reduced capital gains taxes and may defer other capital gains taxes. [22]

Platform[edit]

Traditional real estate investment funds vest all decision-making with a paid manager; individual participants have no ability to select transactions in which to participate. By contrast, Cadre permits investors to choose what investments to make on a building or project level. Cadre curates investment opportunities, and uses an electronic platform to make these qualified opportunities available to investors. Individual investors can then buy a stake in any project.[1] The company performs diligence using its data analysis software and data analysis team.[3] For sellers, the company claims higher speed and lower fees as advantages.[1] CEO Williams claims that real estate "builds multi-generational wealth", and, "Cadre provides access to more members of the global economy with the opportunity to build wealth".[23] Secondary sales and managed portfolios are also supported. In the future, the firm intends to use its data analytics platform to allow investment in opaque, illiquid asset classes beyond real estate (such as "energy, natural resources, oil, infrastructure, or anything that's historically been privately held or inaccessible").[3][24]

References[edit]

  1. ^ a b c d e f g "Google and Facebook employees are flocking to a startup that's raised ~$70 million to shake up the real estate world". Business Insider.
  2. ^ "Trump's Son-in-Law Hasn't Given Up Real Estate For Politics Yet". Bloomberg.com. 8 July 2016.
  3. ^ a b c "Cadre CEO Says Data Processes, Services Give Them an Edge". Bloomberg.com.
  4. ^ Novack, Janet. "The Forbes Fintech 50 For 2016". Forbes.
  5. ^ a b "Goldman Commits $250 Million in Client Money to Real Estate Startup Cadre". Bloomberg.com. 2018-01-10. Retrieved 2018-01-13.
  6. ^ "Real estate investing startup Cadre partners with Goldman Sachs". Reuters. Jan 10, 2018. Retrieved 2018-01-13.
  7. ^ https://www.institutionalinvestor.com/article/b1bd8ckb2qzk0v/The-Startup-Trying-to-Disrupt-Private-Equity-Firms
  8. ^ Balboa, Elizabeth (31 December 1969). "Cadre Transforms Alternative Asset Realm With Flexible Real Estate Investments". Benzinga.
  9. ^ Cutler, Kim-Mai. "Cadre Raises $18.3M From Thrive, General Catalyst To Build Software For Big Commercial Real Estate". TechCrunch.
  10. ^ "28 black founders and investors making an impact in tech - PitchBook News".
  11. ^ "Ryan Williams - Meet Crain's New York Business Class of 2017 40 Under 40". www.crainsnewyork.com.
  12. ^ Communications, Forbes Corporate. "Forbes Releases 2018 Edition of the 30 Under 30 List". Forbes. Retrieved 2017-11-18.
  13. ^ Weiss, Lois (4 January 2017). "Ex-Vornado president takes on larger role at Kushner's Cadre". New York Post.
  14. ^ a b c "5 Fintech Startups To Watch In 2017 | Fast Company". Fast Company. 26 December 2016.
  15. ^ Weiss, Lois (26 January 2016). "Real estate startup Cadre raises whopping $50M". New York Post.
  16. ^ Kolodny, Lora (26 January 2016). "Cadre Scores $50M for Professional Real-Estate Investment". Wall Street Journal.
  17. ^ "Mattresses, Makeup, and Meal Kits: Top 10 NYC Startups to Watch in 2017". Inc.com. 25 January 2017.
  18. ^ "Westward Ho". Equities.com.
  19. ^ "Online Real Estate Marketplace Cadre Raises $65 Million led by Andreessen Horowitz". Crowdfund Insider. 10 June 2017.
  20. ^ "Kushner brothers' Cadre plans to launch mortgage business". The Real Deal New York. 2018-03-08. Retrieved 2018-03-09.
  21. ^ https://www.equities.com/news/how-modern-fintech-disrupts-the-real-estate-industry
  22. ^ https://therealdeal.com/2018/11/30/kushner-brothers-backed-cadre-looks-to-cash-in-on-opportunity-zones/
  23. ^ Sharf, Samantha. "How To Value Boston's Faneuil Hall And Other Questions Fintech Could Answer". Forbes.
  24. ^ "How this 50-person startup is planning to completely transform the real estate industry". builtinnyc.com. 2017-04-05. Retrieved 2018-08-06.

External links[edit]