Alan Zafran, Managing Partner at IEQ Capital, recently joined Nancy Lashine, Managing Partner and Founder of Park Madison Partners on the "Real Estate Capital" podcast for a conversation about the evolution of real estate investing, navigating market cycles, and the future of the Registered Investment Advisor (RIA) landscape. Drawing on decades of experience, Mr. Zafran shared stories and strategies about navigating market cycles, the growth of alternative investments, and the importance of tailored advisory practices in today’s dynamic landscape.
Mr. Zafran began by tracing his career journey from Wall Street to co-founding two RIAs, including IEQ Capital. His early experience at firms like Goldman Sachs and Merrill Lynch shaped his approach to investment advisory, particularly his focus on aligning client goals with market opportunities. This philosophy was tested during the 2008 financial crisis, where Mr. Zafran and his team identified opportunities in distressed mortgage-backed securities, showcasing the importance of strategic foresight and adaptability. He described how this period served as a catalyst for adopting an endowment-style approach, incorporating alternative investments like private equity, venture capital, and real estate into client portfolios.
Mr. Zafran emphasized the importance of balancing risk and return, particularly in sectors such as data centers, light value-add multifamily housing, and distressed commercial properties. He noted, “Real estate remains a compelling potential inflation hedge, but it is crucial to maintain liquidity buffers for unforeseen events.” He also highlighted how careful strategy and market awareness can uncover value in uncertain economic conditions.
The conversation delved into the rapid growth and consolidation within the RIA industry. Mr. Zafran explained how IEQ Capital has embraced this trend to meet the sophisticated needs of affluent families. Larger RIAs, he observed, are well-positioned to provide robust infrastructure and specialized services, from estate planning to tax integration, that complement investment advisory. However, he underscored that the true value of an advisor lies in building trust, understanding client needs, and delivering tailored advice and services.
Mr. Zafran shared his philosophy of blending IQ and EQ—analytical rigor with emotional intelligence—to ensure clients receive advice that resonates both logically and emotionally. He recounted how his team conducts extensive due diligence, not just on investments but also on the people managing them, ensuring clients' capital is placed with those who align with their values and goals.
Beyond his professional perspective, Mr. Zafran shared personal reflections that reveal his thoughtful approach to life and work. His passion for early-morning swims, international hiking adventures, and nonfiction reading reflects a disciplined and curious mindset that informs his leadership. As he noted, “We’re nothing more than people with phones and computers. It’s the culture, integrity, and teamwork we build that create enduring value for our clients and our firm.”
Mr. Zafran’s conversation with Ms. Lashine offered valuable insights into the future of real estate and alternative investments, as well as the role of RIAs in serving the evolving needs of affluent clients. For the full discussion, visit the Real Estate Capital podcast on Apple Podcasts.
The views and opinions expressed are solely those of Alan Zafran, current as of the date indicated, and IEQ does not undertake any duty to update the information set forth herein. The information contained in this document does not constitute an offer to sell or the solicitation of an offer to purchase or sell any securities, including any securities or alternative investments recommended by IEQ.