Compound Your Returns, Not Your Costs: Tax Alpha in Real Estate Private Equity
Presented by Nick Bruce
Founding Partner and Head of Investments & Research, Arqitel
Session date and time May 2, 2023 7:20 - 7:45 a.m.
Real estate can be a highly tax-efficient way to grow income and wealth, however, traditional investment approaches often fail to maximize after-tax returns for taxable investors when they interrupt the compounding process that is so important to building wealth. As Charlie Munger once famously said, “The first rule of compounding: Never interrupt it unnecessarily.” During this session, we will review several of the favorable tax laws afforded to real estate private equity investors, how investors could leverage the tax code and the magnitude of after-tax returns of a tax-efficient real estate private equity strategy versus a tax-agnostic strategy. The result? Money that would otherwise be lost to taxes and third parties is instead allowed to compound, potentially leading to more than double the long-term wealth creation.
ACE Academy 2023 April 30-May 3, 2023 San Diego, CA
Nick Bruce Founding Partner and Head of Investments & Research, Arqitel
Nick Bruce is a founding partner and head of investments and research at Arqitel. Before founding Arqitel, Bruce focused on real estate and infrastructure investment and development at CIM Group. Before that, he spent four years at Oaktree Capital Management, investing in distressed real estate debt and opportunistic real estate equity. He began his career at DWS RREEF, a division of Deutsche Bank AG, where he served on the acquisitions team for its global core and opportunistic real estate funds. He has previously acquired more than $5 billion of commercial real estate and managed assets with a cumulative value of more than $8 billion. Bruce earned BA and MA degrees from the University of Cambridge, where he graduated with highest honors, and an MBA from The Wharton School of the University of Pennsylvania.
