Knaap at APG says buying illiquid assets needs a big balance sheet -- and a lot of homework. That might involving going to India to check out the leaky roof of an apartment building, for example, a “totally different” kind of due diligence than what you’d undertake to buy government bonds.
“You just can’t buy a portfolio of houses from one day to another, in contrast to bonds,” Knaap said. “It’s really labor-intensive.”
This article was provided by Bloomberg News.