Two senior leaders from Keller Augusta's recruitment team, Senior Managing Director Kaitlin Kincaid and Managing Director Sierra Olney, attended IMN's Real Estate Private Funds Forum in Newport, R.I., from June 24-26. Sierra closed out the conference by hosting the event's Closing Fireside Chat with Affinius Capital Chief Financial Officer Tana Gardner. 

One of the clearest themes from this year’s event is that the private funds industry is at an operational inflection point. For years, the industry relied on a highly predictable blueprint as core strategies and operating models remained largely unchanged, supported by consistent market growth. That era is seemingly over. 

Today, macroeconomic pressure, compressed valuations, and shifting investor demands are forcing fund managers to rethink the way they do business. A new playbook for private capital is forming, and that is changing the way they view CRE talent.

Here are five takeaways from the event:

1. The status quo is changing

The private funds market is operating in a very different environment than it was just a few years ago. Long-standing assumptions around structure, strategy, and execution are being challenged, and firms are being forced to adapt. The managers and leaders best positioned for what comes next will be the ones who know how to operate through change.

2. Separately managed accounts (SMAs) continue to gain ground

One of the clearest structural shifts discussed at the conference was the continued move away from traditional open-ended fund structures and toward separately managed accounts. Investors are demanding more control, transparency, and customization, and firms are adjusting their operating models and talent strategies in response.

3. Private credit continues to evolve

Private credit remains a major area of growth, driven in part by institutional demand for separate accounts and more tailored investment strategies. As platforms scale, firms will continue to need experienced professionals across origination, underwriting, portfolio management, and related functions.

4. Margin pressure is driving a sharper focus on operations

In a lower-growth environment, protecting the bottom line requires a more deliberate approach to operations. Firms are looking inward to drive efficiency, make smarter use of resources and technology, and think more carefully about how teams are built. Hiring remains important, but the focus is increasingly on where talent can create the most impact.

5. Specialized expertise is becoming more valuable

As asset-level complexity increases, firms are placing more value on specialized experience. That includes expertise tied to conversions, retrofitting, tax-efficient strategies, and other areas that require a deeper understanding of both market conditions and execution. As compliance deadlines approach and firms look for ways to reposition assets, that expertise will only become more important.

The broader takeaway from the conference was clear: the old playbook no longer applies. Private funds are entering a more selective, more operationally demanding phase, and firms will need to make thoughtful decisions around structure, execution, and talent to stay ahead.

Keller Augusta's Kaitlin Kincaid and Sierra Olney work with clients to conduct searches for myriad commercial real estate functions, from executive-level positions to construction, finance, and asset management roles. Contact Kaitlin and Sierra today to get started bolstering your organization.