Chapter 1Richard Mack

Mack Real Estate Group, New York, New York, USA

Picture of “Richard Mack, Mack Real Estate Group, New York, New York, USA.”

Understand the potential downside of a deal

It is a rudimentary principle of portfolio management theory to incorporate alternative assets as part of a diversified portfolio. One of the most popular alternative investments for sophisticated investors is real estate. While it serves as a partial hedge against inflation, it is also a way to enjoy the potential of a steady cash flow stream.

Within the real estate space, institutional investors are probably most attracted to the private equity arena. Real estate private equity funds have been attracting large amounts of capital with assets under management reaching an all-time high as of the end of 2017 of $811 billion.1 One private equity real estate giant is Richard Mack.

In His Own Words

I was at the top of my class in high school, but not in college. I guess I wanted to have fun, experience being in a fraternity and think creatively away from my major, but I was a hard worker and later regretted my lack of academic discipline in college. By the time I entered college, my father had established himself as a very successful developer. I graduated at a time when people commonly assumed that the son of a successful businessperson was not capable. When I started working, I felt that I had a lot to prove.

I graduated from the Wharton School at the University of ...

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