People Property Place #119 Michael Kovacs, Founding Partner at Castleforge
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Apr 3, 2025 
Michael Kovacs, Founding Partner at Castleforge, shares insights from his journey as a real estate investor. The conversation kicks off with a quirky story about how getting stuck in a lift spurred his entrepreneurial spirit. He discusses the evolution of the office market post-COVID, highlighting the shift in tenant preferences and the importance of quality locations. Kovacs also addresses the fundraising challenges for Castleforge's fourth fund and explores opportunities in Asia and the Middle East, revealing key shifts in investor sentiment.
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Founding Story
- Michael Kovacs and Brandon Hollihan co-founded Mercer Real Estate after getting stuck in a lift.
- This happened while working on a project for Richard Croft, a key figure in UK real estate.
First Fundraise
- Raising their first fund in 2015 was surprisingly easy, attributed partly to luck and market timing.
- US investors were eager to deploy capital in European and London offices, benefiting the firm.
Fund 4 Challenges
- Raising Fund 4 was the most challenging due to market conditions similar to the post-GFC period.
- The lack of distributions from existing investments created a liquidity crunch for investors.