Cadre (company)

Cadre is a New York-based financial technology company that provides individuals and institutions direct access to large commercial real-estate properties.[1]

The business and financial press describe it as a service that “makes the real estate market more like the stock market” by allowing investors to select the individual transactions in which they participate, while investing a smaller amount than would be required to fully fund a transaction.[1] For example, 12 institutional investors (such as family offices and endowments) participated in a $60 million office building purchase.[2] The firm was named to Forbes’ “FinTech50” for 4 years in a row starting in 2016.[3][4][5] In 2019, Cadre was the cover story of the Forbes “FinTech 50” issue.[6][7] In 2018, a partnership with Goldman Sachs was announced through which Goldman Sachs’ private wealth clients committed at least $250 million (USD) real estate investments through Cadre.[8][9] The company also offers a managed portfolio service and a real estate secondary market, as well as a cash holdings account called “Cadre Cash”.[10]

History

CEO Ryan Williams started the company with Thrive Capital founder Josh Kushner, and General Catalyst, which together invested $18 million in a 2015 fundraising round.[11] Startup capital included a $250 million line of credit from the family of George Soros.[12][13] That round also included a $250 million backstop liquidity commitment from an unnamed family office.[1] Vornado CEO Michael Fascitelli also invested in this round and joined the board. Jared Kushner helped launch the business with Williams, and advised the firm for approximately 18 months.[1]

Williams was named one of Forbes’ “30 Under 30” for 2018.[14][15][16] Former Vornado Realty Trust CEO Michael D. Fascitelli leads the investment committee.[17] Other team members were hired from Silicon Valley firms, such as head of product Andrew Borovsky from Square, Inc.,[1][18] and the former head of engineering from Mint.com.[18] In 2019, the company announced the hire of former LendingTree executive Sam Mischner to serve as Chief Commercial Officer.[19]

In 2016, the firm raised another $50 million, which included Michael Fascitelli joining Cadre’s investment committee.[20][21] In 2017, it was named an “Inc. New York start-up to watch”,[22] to Equities.com’s Pioneer 250,[23] and to Fast Company’s “5 FinTech startups to watch”.[18] The firm raised an additional $65 million in 2017 in a round led by Andreessen Horowitz.[24] A 2018 deal permits private wealth clients of Goldman Sachs to invest through the Cadre platform.[8]

In early 2018, it was reported that leaders of the company planned to expand their service offering to include residential real estate loans. The article was later updated to clarify that the new business will involve investing in loans issued by others.[25]

In 2018 the company announced the “Cadre Secondary Market,” which permits users to sell positions after a one-year holding period. It also announced the “Cadre Managed Portfolio” service, which allows users to create a diversified account with a $250,000 minimum.[26]

In late 2018, the company launched an opportunity zone fund based on tax changes established in the Tax Cuts and Jobs Act of 2017, which were designed to encourage investment in low-income areas. Investors who invest in qualified projects and meet holding-period requirements face reduced capital gains taxes and may defer other capital gains taxes.[27]

In a 2019 CNN interview, CEO Ryan Williams said that Cadre’s ability to disrupt the industry was because “real estate is a Jurassic industry. It’s antiquated.”[28]. In late 2019 it was reported the Cadre had returned more than $100 million to investors.[29]

In 2020, Cadre announced that it hired Allen Smith, former CEO of Four Seasons Hotels and Resorts, as president. Smith previously worked as the CEO of Prudential Real Estate Investors.[30][13]

Also in 2020, CEO Ryan Williams announced plans for Cadre to support increased equality. The company made Juneteenth a company holiday and Williams, who shared his personal ancestry story including former slaves, also published a plan to help increase economic opportunity for diverse communities through “formal mentorship programs to provide hands-on guidance, and … comprehensive skills-training programs that help people of all ages get a start in careers that will allow them to succeed in a fast-changing economy.”[31]

In October 2020, Cadre added the “Cadre Cash” platform, allowing investors to earn a cash reward on qualifying cash balances held in the platform.[32]

Platform

Traditional real estate investment funds vest all decision-making with a paid manager; individual participants have no ability to select transactions in which to participate. By contrast, Cadre permits investors to choose what investments to make on a building or project level. Cadre curates investment opportunities, and uses an electronic platform to make these qualified opportunities available to investors. Individual investors can then buy a stake in any project.[1] The company performs diligence using its data analysis software and data analysis team.[3] For sellers, the company claims higher speed and lower fees as advantages.[1] CEO Williams claims that real estate “builds multi-generational wealth”, and, “Cadre provides access to more members of the global economy with the opportunity to build wealth”.[33] Secondary sales and managed portfolios are also supported. In the future, the firm intends to use its data analytics platform to allow investment in opaque, illiquid asset classes beyond real estate (such as “energy, natural resources, oil, infrastructure, or anything that’s historically been privately held or inaccessible”).[3][34] The platform also offers a cash reward on qualifying balances in the “Cadre Cash” program.[32]

References

  1. ^ Jump up to:ab c d e f g “Google and Facebook employees are flocking to a startup that’s raised ~$70 million to shake up the real estate world”. Business Insider. Archived from the original on 2017-04-04. Retrieved 2017-04-04.
  2. ^“Trump’s Son-in-Law Hasn’t Given Up Real Estate For Politics Yet”. Bloomberg.com. 8 July 2016. Archived from the original on 7 April 2017. Retrieved 4 April 2017.
  3. ^ Jump up to:ab c “Cadre CEO Says Data Processes, Services Give Them an Edge”. Bloomberg.com. Archived from the original on 2017-04-07. Retrieved 2017-04-04.
  4. ^Novack, Janet. “The Forbes Fintech 50 For 2016”. Forbes. Archived from the original on 2017-04-04. Retrieved 2017-04-04.
  5. ^“Archived copy”. Archived from the original on 2020-03-04. Retrieved 2020-07-18.
  6. ^Communications, Forbes Corporate. “Forbes Releases Fourth Annual Fintech 50 List: The Future of Your Money”. Forbes. Archived from the original on 2019-02-12. Retrieved 2019-02-11.
  7. ^Vardi, Nathan. “Ryan Williams, 30, Started A Revolutionary $800M Fintech. But Can He Escape His Kushner-Trump Connection?”. Forbes. Archived from the original on 2019-02-12. Retrieved 2019-02-11.
  8. ^ Jump up to:ab “Goldman Commits $250 Million in Client Money to Real Estate Startup Cadre”. Bloomberg.com. 2018-01-10. Archived from the original on 2018-01-14. Retrieved 2018-01-13.
  9. ^“Real estate investing startup Cadre partners with Goldman Sachs”. Reuters. Jan 10, 2018. Archived from the original on January 12, 2018. Retrieved 2018-01-13.
  10. ^“Archived copy”. Archived from the original on 2018-11-22. Retrieved 2018-11-21.
  11. ^Cutler, Kim-Mai. “Cadre Raises $18.3M From Thrive, General Catalyst To Build Software For Big Commercial Real Estate”. TechCrunch. Archived from the original on 2017-04-04. Retrieved 2017-04-04.
  12. ^https://www.marketwatch.com/story/trump-adviser-kushners-undisclosed-partners-include-goldman-and-soros-2017-05-03
  13. ^ Jump up to:ab“Archived copy”. Archived from the original on 2020-05-26. Retrieved 2020-07-18.
  14. ^“28 black founders and investors making an impact in tech – PitchBook News”. Archived from the original on 2017-04-04. Retrieved 2017-04-04.
  15. ^“Ryan Williams – Meet Crain’s New York Business Class of 2017 40 Under 40”. www.crainsnewyork.com. Archived from the original on 2017-04-07. Retrieved 2017-04-06.
  16. ^Communications, Forbes Corporate. “Forbes Releases 2018 Edition of the 30 Under 30 List”. Forbes. Archived from the original on 2017-11-14. Retrieved 2017-11-18.
  17. ^Weiss, Lois (4 January 2017). “Ex-Vornado president takes on larger role at Kushner’s Cadre”. New York Post. Archivedfrom the original on 22 October 2017. Retrieved 13 December2017.
  18. ^ Jump up to:abc “5 Fintech Startups To Watch In 2017 | Fast Company”. Fast Company. 26 December 2016. Archived from the original on 4 April 2017. Retrieved 4 April 2017.
  19. ^“Cadre Expands Executive Team, Appointing Sam Mischner as Chief Commercial Officer”. finance.yahoo.com. Archived from the original on 2019-06-11. Retrieved 2019-05-23.
  20. ^Weiss, Lois (26 January 2016). “Real estate startup Cadre raises whopping $50M”. New York Post. Archived from the original on 14 January 2018. Retrieved 13 December 2017.
  21. ^Kolodny, Lora (26 January 2016). “Cadre Scores $50M for Professional Real-Estate Investment”. Wall Street Journal. Archived from the original on 4 April 2017. Retrieved 4 April2017.
  22. ^“Mattresses, Makeup, and Meal Kits: Top 10 NYC Startups to Watch in 2017”. Inc.com. 25 January 2017. Archived from the original on 23 February 2017. Retrieved 4 April 2017.
  23. ^“Westward Ho”. Equities.com. Archived from the original on 2017-04-05. Retrieved 2017-04-04.
  24. ^“Online Real Estate Marketplace Cadre Raises $65 Million led by Andreessen Horowitz”. Crowdfund Insider. 10 June 2017. Archived from the original on 6 September 2017. Retrieved 16 June 2017.
  25. ^“Kushner brothers’ Cadre plans to launch mortgage business”. The Real Deal New York. 2018-03-08. Archivedfrom the original on 2018-03-09. Retrieved 2018-03-09.
  26. ^“Archived copy”. Archived from the original on 2018-11-22. Retrieved 2018-11-21.
  27. ^“Archived copy”. Archived from the original on 2018-12-11. Retrieved 2018-12-10.
  28. ^Business, Matt Egan, CNN. “Meet the 31-year-old African American CEO aiming to revolutionize real estate investing”. CNN. Archived from the original on 2019-05-22. Retrieved 2019-05-23.
  29. ^“Archived copy”. Archived from the original on 2019-12-06. Retrieved 2020-07-18.
  30. ^Vardi, Nathan. “Real Estate Tech Startup Cadre Hires Former Four Seasons CEO As President”. Forbes. Archived from the original on 2020-02-04. Retrieved 2020-02-04.
  31. ^“Juneteenth and beyond: Corporate leaders must pave a path to economic justice”. Fortune.
  32. ^ Jump up to:ab“Cadre CEO on launch of ‘cash’ product”.
  33. ^Sharf, Samantha. “How To Value Boston’s Faneuil Hall And Other Questions Fintech Could Answer”. Forbes. Archivedfrom the original on 2017-04-04. Retrieved 2017-04-04.
  34. ^“How this 50-person startup is planning to completely transform the real estate industry”. builtinnyc.com. 2017-04-05. Archived from the original on 2018-08-07. Retrieved 2018-08-06.

Ofer Abarbanel – Executive Profile

Ofer Abarbanel online library

Ofer Abarbanel online library

Ofer Abarbanel online library

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