InvestorFlow and Coyote Combine to Power Collaboration Across a Complete Industry Platform
By Todd Glasson
April 10, 2024
This week, we announced the acquisition of Coyote Software, a London-based SaaS leader powering large commercial real estate (CRE) firms in the UK and Europe, including 3 of the top 5 CRE firms with over £200 billion GBP of assets under management. Coyote enables investment and asset management teams to collaborate on deal flow, price bids, maximize portfolio performance, track key leasing events, and proactively manage risk. The combination of Coyote with InvestorFlow’s CRM and portal capabilities for fundraising and investor relations helps us complete our vision for an end-to-end industry cloud for CRE that drives collaboration across the real estate investment lifecycle from limited partners to property managers.
As we share the news, I want to highlight a few important aspects of this new and positive development for the entire InvestorFlow community.
Our vision is to be the leading front-office technology platform for the private markets and real estate is a tremendously important alternative asset class. Real estate deal teams operate differently from other private markets participants, and we recognized a need to enhance our product suite to support deal teams, asset managers, and property managers. We also realize that many limited partners are demanding more transparency based on the recent challenges with rising interest rates and work from home policies. The opportunity for us to now publish down to the property level through our investor portal provides the granular risk reporting LPs now desire.
It might seem contrarian to be investing in real estate transaction and property technology while sales volumes are at a decade low. While we believe there will be more volatility in the CRE market, we are at an all-time high of dry powder in closed-end real estate, and public REITs are signaling that private real estate assets are now fairly priced. This week’s $10 billion deal by Blackstone to take Apartment Income REIT private at a 25% premium tells us that pressures are easing, and real estate is back. We believe we are the beginning of a new investment cycle, and that technology will help drive better investment decisions and risk management in this new era.
Coyote’s enterprise-class capabilities are proven with clients such as Nuveen, LGIM, and Royal London Asset Management. The platform has 80,000 assets with more than 500 million square feet managed today. InvestorFlow’s clients include many of the largest North America-domiciled CRE players and we are excited to expand our platform to better serve their teams’ needs.
InvestorFlow is focused on the cycle of an investment firm from fundraising to deal management, investor relations and services, and ultimately fund reporting and analytics. With Coyote, we now have the capabilities to provide accurate consolidated reporting across the enterprise which enables a completely new level of collaboration among deal teams, asset managers, and property managers as well as provide the granular reporting and automated data analysis limited partners are looking for. In fact, our recent State of Digital Transformation Report conducted with Lionpoint illustrated that the largest gaps at alternative investment firms are “available and accurate reporting” and “automated data analysis for investor needs.”
The combination of InvestorFlow’s fund and investor reporting with Coyote’s ability to drill down to provide more granular and daily asset-level reporting, including rent roll, vacancy, contract milestones, and valuations, provides the platform LPs are demanding today. We’re excited to bring this platform to new firms and to our existing customers in real estate and to expand this approach to other asset classes as well.
As a result of this transaction, we will have large and growing team in London that can support our customers throughout Europe and into Asia. We will now have 18 hours of continuous coverage around the globe. We plan to grow our team in London to support our growth and expand InvestorFlow’s full suite of solutions into Europe. To date, while InvestorFlow supports many international teams of domestic companies, we’ve had only a handful of customers domiciled in Europe. With this transaction, we now have well over 50 customers in Europe and expect to grow this number significantly.
I want to mention what has pleased me the most over the past six months is getting to know the Coyote team. While I was excited about the strategy of buying a company in London to accelerate our growth in Europe, I was concerned about cultural differences. Oli Farago, CEO and Co-Founder of Coyote, has built an incredible team and culture that is surprisingly very similar to our culture at InvestorFlow. We have both built companies that are client focused and driven by excellence. I am excited to have Oli and the team join us on our new combined journey to build the most powerful platform in the CRE industry and bring it around the globe.
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