For more than 25 years, Eugene Gorab has led Greenfield Partners, LLC, as CEO and President. Through the real estate private equity firm, he and his team manage over $7 billion in operating companies and real estate properties. Eugene Gorab’s investment philosophy at the firm involves investing horizontally across property types and vertically to maintain flexibility for clients.
With horizontal integration, companies acquire another business that operates at its same level in the value chain. Meanwhile, vertical integration refers to acquiring businesses that operate in the same value chain, but at a different level. In terms of investments, this distinction remains similar, where a vertical investment involves investing in a business that operates at a different level in a particular industry. For real estate investing, specifically, vertical integration offers many benefits. For example, vertical integration grants investors more opportunities when pursuing real estate deals. Rather than outsourcing certain aspects of an investment property to a third party, such as construction or management, vertically integrated investments align all of these interests and operations for investors. This means that when they see an opportunity, they can put the deal in place more efficiently since they are not dealing with any other business owners. There is also less risk associated with vertical investing in real estate. Vertically integrated investment firms are better positioned for ready-to-invest opportunities. This means that investors are presented with real estate investment opportunities that carry less risk since they are already fully prepared thanks to the firm’s vertically integrated team. This also contributes to better expertise of the entire market and not just one area, so investors can enjoy greater potential returns on their real estate investments.
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AuthorCurrently, Eugene Gorab serves as the President and Chief Executive Officer of Greenfield Partners, LLC, a company he founded in 1997. Archives
May 2022
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