Goldman Sachs, Cadre as Partners for Real Estate Deals

Cadre, the New York-based real estate crowdfunding startup, has partnered with Goldman Sachs Group Inc to allow the bank’s private wealth management clients invest in real estate through the startup’s platform.

Goldman’s private wealth clients have committed $250 million to the platform, money that will get funneled directly into a portfolio of real estate stakes assembled by Cadre, according to Ryan Williams, CEO and Co-Founder of Cadre.

The startup company utilizes technology to make it easier and less costly for accredited investors and institutions to buy small stakes in US commercial real estate online. Additionally, these investors must meet US securities regulations for annual income of at least $200,000 or a net worth topping $1 million.

“In today’s economic environment, investors need to be able to access an array of opportunities, including alternative investments, to enhance and differentiate their portfolios,” said Williams.

“Our goal at Cadre is to drive progress in real estate investing by improving the quality of participation and our partnership with Goldman Sachs is an important step in delivering on this mission.”

Williams also said that Cadre would grow its holdings to about 2 dozen properties in the next 12 months, and would likely raise further funds from Goldman high-net-worth clients to continue to add to its real estate holdings.

Jared and Joshua Kushner, the founders of Thrive Capital, co-founded Cadre with Ryan Williams, a Blackstone Group and Goldman Sachs alumni and Cadre’s current CEO. Jared Kushner is a senior adviser and son-in-law of US President Donald Trump, while Joshua Kushner is a venture capitalist.

The real estate firm has also been amassing a number of executives, including Michael Fascitelli, the former CEO of Vornado Realty Trust. Fascitelli, who had written an early seed-size check to Cadre, took over Cadre’s investment committee as its chair and senior adviser a year ago, and he now approves all deals.

In June, Goldman Sachs was among the investors in a $65 million equity financing round in Cadre. The investment was led by venture capital firm Andreessen Horowitz, with participation from Jim Breyer of Breyer Capital, Ford Foundation, General Catalyst, Khosla Ventures, and Joshua Kushner’s Thrive Capital.

“Our goal is to ensure we provide our clients with innovative and diverse investment opportunities to help them drive returns and protect capital,” said Eric Lane, Global Co-head of the Investment Management Division of Goldman Sachs. “Our ongoing partnership with Cadre underscores this commitment.”

Goldman Sachs shares rose 0.2% to close at $254.33 in the last trading session.

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