The Emerging Role of the Independent Fiduciary for Non-Traditional Real Estate Investments

  • August 4, 2000
  • • Written by: Tom Hester John McMahan

Fall 2000, Vol 25, No 3

Abstract: Pension plans have discovered the value of the independent fiduciary in evaluating non-traditional real estate investment opportunities such as joint-ventures, opportunity funds, development programs and the like, which are often sponsored by firms that are not registered investment advisors. Seeking to provide assurance that these investments meet minimum fiduciary standards, pension plans are turning to independent fiduciaries to render overall advice on these investments. This manuscript reviews the evolution of the independent fiduciary, presents procedures designed to evaluate investments under standards of fiduciary care, and provides a simple case study to see how value is added to the investment decision process.