Deb Harmon, Co-Founder and Co-Chief Executive Officer of Artemis | Anar Chudgar, Co-President of Artemis
Nov 27, 2023
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Deb Harmon, Co-Founder and Co-CEO, and Anar Chudgar, Co-President of Artemis, discuss finding opportunity in the market, the 'force multiplier' effect of investing through emerging managers, successful collaborations with operating partners, challenges in fundraising, market conditions and opportunities, middle market investment strategy, challenges faced by female CEOs, and advice for young professionals in real estate.
Artemis Real Estate Partners focuses on investing in middle market real estate deals across various property types and supporting women and people of color-led firms.
Artemis believes in the force multiplier effect of providing capital to overlooked emerging managers and aims to advance diversity in the real estate talent ecosystem.
Artemis Real Estate Partners recognizes the opportunities in the healthcare real estate sector and actively seeks investments in core plus healthcare properties.
Deep dives
Artemis Real Estate Partners focuses on middle market real estate investments
Artemis Real Estate Partners is a $10 billion AUM Real Estate Investment Manager that specializes in middle market real estate investments across the equity and debt risk spectrum. They work with a network of emerging managers, with a focus on supporting women and people of color-led firms. The firm primarily invests in core plus, value-add, and opportunistic deals across various property types such as storage, residential, industrial, and healthcare. Their approach includes providing one-stop-shop capital solutions for their joint venture operating partners in the middle market, aiming to be a trusted and supportive partner in their growth and success.
Artemis discusses their focus on diverse and emerging managers
Artemis Real Estate Partners has a dedicated platform for investing with diverse and emerging managers. They believe in the force multiplier effect of providing capital to these managers, who are often overlooked by traditional institutional investors. Through their program, Artemis aims to advance diversity in the real estate talent ecosystem and has successfully transacted with over 95 emerging managers, 40% of which are diverse-owned. They prioritize investing with managers who have strong track records and demonstrate the potential to grow and scale their businesses. Their aim is to support these managers through joint venture partnerships, helping them graduate to greater success in fundraising and attracting institutional capital.
Artemis highlights their expertise in the healthcare real estate sector
Artemis Real Estate Partners has a dedicated healthcare platform that focuses on investing in core plus healthcare properties. They diversify across medical office, senior housing, and debt, with a team experienced in both real estate and healthcare. Despite the challenges posed by the COVID-19 pandemic, their healthcare investments have performed well, generating stable returns and attracting significant investor interest. They believe in the long-term growth potential of the healthcare real estate sector, as the aging population continues to drive demand. They are actively looking for opportunities, including distressed assets and portfolios, to expand their presence in this market.
Artemis assesses the current real estate market and capital allocation trends
Artemis Real Estate Partners highlights the shift in capital allocation within the real estate investment industry. They note that a significant portion of capital is going to larger, well-established firms, with the top 10 sponsors raising the majority of real estate capital. This trend favors larger and more established players, making it more challenging for smaller, emerging managers to attract capital. However, Artemis believes that their focus on the middle market offers unique opportunities, as they leverage their expertise, network, and ability to navigate complex and less efficient transactions. They also anticipate potential distress in the market, particularly in the multifamily and office sectors, due to factors such as loan maturities and overbuilding. Artemis remains agile in their investment approach, aiming to deliver attractive risk-adjusted returns for their investors.
Collaborative Leadership: A Hallmark at Artemis
Artemis embraces collaborative leadership as a hallmark of their organization. They believe that one plus one can equal 11 when done right, highlighting the power of diversity of perspective and thought. Their co-portfolio managers bring different backgrounds and expertise to the table, resulting in stronger decision-making and better resolutions. Collaborative leadership also involves embracing conflict and utilizing it to generate more transparent and improved outcomes. This approach has been integral to Artemis' success and sets a strong foundation for future generations.
Building a Legacy of Performance and Purpose
Artemis aims to be a force multiplier of performance and purpose, combining outstanding financial results with a commitment to advancing diversity, inclusion, and changing the face of the real estate industry. They prioritize closing the economic opportunity gap for diverse and emerging managers, as well as providing opportunities for talent from underrepresented backgrounds. By building partnerships and investing in diverse talent, Artemis has demonstrated that diverse teams, although more challenging to build and manage, can significantly outperform. Their purpose-driven approach is a legacy that will continue to shape the real estate industry for years to come.
Deb Harmon, Co-Founder and Co-Chief Executive Officer of Artemis, and Anar Chudgar, Co-President of Artemis, talk about finding opportunity in today’s market and the “force multiplier” effect of their investing through emerging managers.
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