Keep pulling the thread on Thomas Mueller-Borja.
BlackRock redesigned its investment committee process to include autonomous voting, where members vote privately via a link and results are sent to an independent risk team to encourage dissent and reduce peer pressure.
BlackRock's investment committee process includes a designated 'challenger' role, a non-committee member who acts as a devil's advocate to champion a pre-mortem analysis of potential deal failures.
Thomas Mueller-Borja asserts that in a high sovereign debt environment, central bank rate cuts may cause the yield curve to steepen, increasing the term premium and preventing real estate cap rates from compressing as they normally would.
BlackRock currently manages $13.5 trillion in assets under management.
BlackRock's real estate business manages approximately $100 billion in assets.
Thomas Mueller-Borja and his co-head Paul Temet manage approximately $25 billion in real estate assets at BlackRock.
BlackRock's value-add real estate funds typically have between 40 and 60 investors and range in size from $1.5 billion to $3 billion.
At BlackRock, raising capital for a new fund requires an internal sales process to convince the firm's own distribution team of the strategy's merits before approaching external clients.
To raise a $2 billion fund with a €50 million average ticket size and a 20% conversion rate, a fundraising team would need to build a prospect funnel of approximately 200 potential investors.
BlackRock's real estate strategy favors countries with lower levels of sovereign indebtedness to increase the probability of benefiting from cap rate compression when interest rates fall.
BlackRock's real estate team views Sweden favorably for investment due to its low debt-to-GDP ratio of 35%.
BlackRock's real estate team views Germany favorably for investment, anticipating its debt-to-GDP ratio will remain around 85% even after significant fiscal spending.