So how does the just-turned-20-year-old intern start working at Restack and have any idea what they're doing? Obviously, it is with my fabulous two years of university 'schooling' in marketing and business and zero experience in tech, real estate, or finances. So sit back for a minute and join me on a journey into the world of Restack, a pioneering tech-enabled real estate fund administration firm, as we unravel the intricacies of their operations. As simple as it comes, here is a step-by-step guide for understanding what this tech-enabled real estate fund administration does.
Unravelling the Tech Side of Restack:
At the heart of Restack's modus operandi lies its tech-enabled approach, an innovative strategy that leverages existing technology to revolutionize real estate fund administration. But what does "tech-enabled" really mean for Restack? Let's break it down:
1. Embracing Yardi:
Restack's foundation rests upon Yardi, a robust multifamily and commercial property management accounting platform. Rather than invent new technology, Restack harnesses the power of Yardi, a big fancy California company started in the 1980s. According to Forbes, Yardi has over 13,000 customers in over 80 countries and over $ 4 trillion in assets, which is a pretty big deal.
2. The Middle Ground:
One might wonder why GPs don't directly approach Yardi for their software needs. Here's the catch: Yardi, a significant player in the industry, comes with a hefty price tag, deterring smaller firms from accessing its services. Restack bridges the gap by acting as an intermediary, providing Yardi consultations, software integration, and even offering its own branch of Yardi software solutions.
Now, let's pivot to the real estate aspect of Restack's operations, where the firm's role as a facilitator becomes apparent:
1. Clientele and GPs:
Restack predominantly caters to General Partners (GPs), also known as sponsors, who orchestrate real estate syndication deals. Real estate syndication deals can be complicated and require much effort, from raising capital, finding properties, arranging finances, investment strategies, and more.GPs turn to Fund Admins for essential services that streamline these complex processes.
2. The Middle Ground:
One might wonder why GPs don't directly approach Yardi for their software needs. Here's the catch: Yardi, a significant player in the industry, comes with a hefty price tag, deterring smaller firms from accessing its services. Restack bridges the gap by acting as an intermediary, providing Yardi consultations, software integration, and even offering its own Yardi software solutions.
Lastly, let's unravel the fund administration facet of Restack's offerings, which completes the circle of their innovative approach:
1. Fund Administration Unveiled:
Fund administration involves managing an investment fund's intricate accounting, reporting, asset valuation, capital calls, and more. These operations can be daunting for back offices to handle independently, spurring a trend of outsourcing.
2. Restack's Role in Streamlining:
In a traditional real estate landscape, paper-based processes dominated; however, Restack's intervention ushered in digital efficiency. With a wealth of details, figures, and statistics to manage from each investment, GPs often find solace in outsourcing their fund administration needs.
3. Restack's Multifaceted Offerings:
Restack serves as a Yardi consultant to GPs, aiding them in optimizing their software usage. Additionally, Restack's proprietary Yardi software line is a lifeline for smaller firms that need sophisticated tools without breaking the bank. The firm provides implementation assistance, training, and on-call support, offering a comprehensive solution.
Restack's innovative approach hinges on using Yardi software to manage the complex web of operations within a GP's firm. This young intern's journey into tech-enabled real estate fund administration showcases the fusion of technology and traditional industries, carving a niche for Restack as a facilitator of seamless, efficient processes.
