Sid Sharmawas initially intending to turn down David di Pilla’s invitation for a cup of coffee.They did meet, and Sharma, then at SCA Property Group, admits he was taken aback when the former UBS banker asked him something he’d never considered. Specifically, whether Sharma would be proud to pass on the stock of companies he’d run to his children.
Sharma isn’t the only one to have had initial reservations about a former banker building an alternative asset management group. But a few years after the first property fund, di Pilla and his team have successfully launched two more funds, closed plenty of acquisitions and are in the process of launching a third fund.
But ask di Pilla about what the higher interest rate environment means for the target and he’s “very confident” of meeting it. The new fund will have its private asset holdings independently valued twice a year, though di Pilla doesn’t want to weigh in on the broader debate about valuations used by superannuation funds for private assets.Noting that private markets tend to be about six to 12 months behind listed ones for valuations, he says valuations are “catching up” to those in listed markets and possible assets could crop up in the sector.
I'm sure he would've drunk the water if it made him money.