Ron Dickerman traveled to San Francisco in the depths of the Great Financial Crisis (GFC) to meet with a wealthy private investor, just one stop among many as he traversed the country as part of a road show, of sorts.
It was around seven years since Dickerman had founded his private equity real estate investment company Madison International Realty in 2002. The investor told him: “We’re in the middle of a global financial crisis and a recession, and I have $1 billion in the bank and I want to start buying assets.”
That investor, though, thought the downturn was an “opportunity-less recession.”
“His view … was that there was not a lot of price capitulation,” — or when losses in value amid a downturn lead to a period of broad, panicked sell-offs in the market — Dickerman said. It’s something that naturally occurs ahead of a recovery. “In hindsight, there actually was price capitulation, and prices have…