129: The Capital Markets Playbook: Strategies for Risk Adjusted Returns in 2025 with David Borden, Managing Director, Ackman Ziff

Design Development welcomes David Borden, Managing Director at Ackman Ziff, to discuss the nuances of capital markets amid a volatile economic climate. 

David dives into the pivotal role capital advisory firms play in navigating these changes. They discuss the importance of risk-adjusted returns, the impact of treasury rates, and the differing priorities in capital deployment across various markets. Borden also highlights the evolution of Ackman Ziff's approach in maintaining its boutique ethos while servicing both large institutional clients and emerging managers. This episode sheds light on challenges, strategies, and projections for the real estate sector.

Key Takeaways:

• Commercial real estate is experiencing volatility due to high interest rates and shifting economic policies, which impacts liquidity and investment decisions.
• Ackman Ziff remains a leading capital advisor by staying nimble, maintaining strong client relationships, and offering tailored capital solutions across debt, equity, and mezzanine financing.
• Understanding risk-adjusted returns is crucial, as it drives investment decisions in real estate markets, pushing investors to seek safer or more opportunistic ventures.
• Effective client service and a focus on business ethics are fundamental to Ackman Ziff's sustained success over nearly a century.
• Real estate professionals should explore emerging markets and adopt innovative business strategies, including technology, to stay competitive amid changing dynamics.

Notable Quotes:

1. "From a capital markets perspective, there is a lot of liquidity in the market. But with all the dislocation and uncertainty, investors just naturally seek either safer investments or take advantage of market dynamics."
2. "What good is signing up an opportunity or telling somebody you can get that done in order to fall short? We need to hyper-focus on bringing opportunities that don't waste time."
3. "It's our job to add value. If there's an owner or developer doing everything right, we should continue to stay the course and work on other opportunities."
4. "If you want to be a participant in significant institutional grade product, you need to be focused and selective as to what opportunities to bring to capital markets."
5. "Good business ethics is good business. It's a statement that's been such a driving factor in being able to not just exist, but scale for a hundred years."

Resources:

• Ackman Ziff's Website: ackmanziff.com
• Mind Pump Podcast: A health and fitness podcast recommended by David Borden.
• Ackman Ziff's AZ education initiative, aimed at educating the next generation of real estate profess

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