D.F.A. #22: Exclusive Interview with David Lahmi from Shine Group + Exciting SVP Advisory Role at Alpha Catalyst CRE
Explore Shine Group’s success with Israeli family offices and a key SVP Advisory role at Alpha Catalyst CRE. Dive into collaboration insights and growth opportunities in commercial real estate.
It’s been a while since our last big interview, and we’re excited to return with an exceptional one! In North America, conference discussions typically focus on investments from the perspectives of U.S. and European family offices. Rarely do we get an inside look at how an Israeli family office operates.
Over the past year, I've had the pleasure of getting to know David Lahmi and the Shine Group. Unlike their U.S. and European counterparts, Middle Eastern family offices often have a unique focus on long-term investments, regional diversification, and a strong emphasis on family legacy and values. I thought it would be fascinating to share insights into how their team functions and invests.
David, could you start by telling us a bit about your background and how you came to join Shine Global Family Office? Serving primarily Israeli and European High Net Worth Individuals (HNWI), I spent many years working in the Swiss Private Banking Sector. Ten years ago, I decided to evolve to the Family Office side, so I joined a leading a multi-family office, the Shine Global Family Office.
What motivated your transition from the corporate and investment banking sector to a family office environment? My main motivation was to become more intimate with clients so that I could fulfill all of their requirements without being constrained by a single bank or portfolio. As a family officer, you frequently have to take on the role of a consigliere for the family in addition to managing the clients' financial assets. Therefore, a variety of factors should be considered when making investment decisions, including the family's current situation, their goals, and their constraints.
The recent conflict has undoubtedly impacted many aspects of life in Israel, including the financial sector. How have Israeli family offices like Shine Group coped with the challenges posed by the war? These are indeed difficult times. There are numerous ways in which this conflict situation impacts the financial industry as a whole, such as the loss of currently serving employees, the strain on the local economy, or the ongoing uncertainty that is detrimental to investments. The human elements are the most difficult, especially in a small nation like ours, where every family experiences loss and pain. Even a simple question like “how are you?” sounds weird today… But Israel is renowned for its resilience, and we make it our mission to triumph on all fronts, no matter what. Look at the incredible answer Israelis have been giving since October 7th! Everyone is eager to assist. Many people are contributing their money, their time, and other resources to support the soldiers and any bereaved families. One can only be hopeful for the future of this nation. Thus, we think a bright future is ahead of us, even though business is not operating at its optimal level for now.
Given your extensive experience with high net worth individuals, how have you seen their needs and expectations evolve over the last 5 years? Absolutely. In today's fast-paced world, high net worth individuals (HNWIs) are constantly evolving their needs and expectations. Let's take interest rates, for example. Just five years ago, cash wasn't generating much return thanks to near-zero rates. Now, while Treasury bills offer a decent option for "safe" returns, it's definitely reset the baseline for client expectations. In fact, these days, most clients wouldn't settle for anything less than a 5% annual return.
Likewise, the rise of digital assets has created a whole new asset class. HNWIs are curious about integrating these assets into their portfolios, but they also want guidance on navigating the complexities and user experience of these new investment vehicles.
Can you share a bit about how you approach building and maintaining relationships with HNWIs, particularly in Israel and Europe? Because Israel is such a small country, its business environment is known for being relationship-oriented and fast-paced. Here, I prioritize gaining a thorough understanding of each client's unique background, family dynamics, and risk tolerance. Proactive communication and transparency, combined with an intimate relationship, are essential, as is the capacity to handle the complexity of Israel's unique ecosystem.
In Europe, the story is somewhat different: there is a major emphasis on asset preservation and succession planning across generations. My strategy here involves creating long-term partnerships based on discretion and a thorough awareness of the diverse regulatory contexts across European countries.
In both areas, building strong relationships is essential. It's crucial to have clear communication, personalized attention, secure data, and an understanding of cultural nuances.
How does Shine Group balance traditional investments with alternative assets, and what trends are you currently observing in the market?
We must first and foremost navigate each client's needs and circumstances.
In order to balance traditional and alternative assets, Shine Group uses an hybrid strategy as a general approach. A foundation is provided by a core portfolio of income-producing assets such as stocks and bonds that are stable, liquid, and, as much as possible, yield income. After this foundation is strong, we add alternative investments with higher potential returns but higher risk, such as real estate, venture capital, and private equity. The allocation is obviously customized based on the investment objectives and risk tolerance of each client.
What do you see as the future trends for family offices in Israel and globally?
The future of family offices, both in Israel and globally, looks like a dance between innovation and tradition.
Without a doubt, technology will be more prevalent, with artificial intelligence and sophisticated data analytics helping to make better investment decisions and automating tasks. This digital transformation, however, won't come at the expense of personalization.
Despite this technological embrace, the human element remains irreplaceable. The collaboration between humans and machines will be key. In order to navigate complicated financial environments, offer strategic advice, and forge lasting relationships with clients, experienced professionals will remain essential.
Speaking as an Israeli, I can only suggest that Israel ought to be a major player in this transition: family offices have a great chance to implement state-of-the-art methods for client communication and portfolio management thanks to Israel's thriving tech scene.
I’m pleased to introduce Yuriy Gelfman, an innovative and accomplished leader in the commercial real estate industry. Yuriy serves as the President and Chief Investment Officer at Alpha Catalyst CRE, a firm experiencing rapid growth and establishing new industry benchmarks. With an impressive track record, Yuriy previously co-founded Olive Tree Holdings, where he co-led the acquisition of over 17,000 underperforming apartments and achieved exceptional outcomes on the repositioning and disposition of over 6,700 units.
What’s Happening at Alpha Catalyst CRE?
Alpha Catalyst CRE is expanding and looking for a talented SVP of Advisory to join their team. This is a pivotal role where you'll work closely with Yuriy and the entire leadership team to drive transformative advisory value-add for commercial real estate property owners. The SVP of Advisory will be responsible delivering strategic advice to owners of multifamily assets and assisting them with selecting business plans that optimize equity value-creation across asset management, debt capital markets, and asset sale vectors based on each property's current and future prospects.
This is a unique opportunity to be part of a firm that’s at the forefront of transforming the commercial real estate landscape. If you’re passionate about real estate, have a strategic mindset, and are eager to make a significant impact, this could be the perfect fit for you.
Exclusive Interview Tease
Next week, we’ll have an exclusive interview with Yuriy where he’ll share his insights on the market, his innovative investment strategies, and his vision for Alpha Catalyst CRE. Trust me, you won’t want to miss this!
Stay tuned for more details on the new opportunities at Alpha Catalyst CRE and our in-depth conversation with Yuriy. It’s going to be packed with valuable insights and inspiration.
Here’s the details on what his team’s up to:
SVP, Multifamily Value Creation Advisory
About Us:
At Alpha Catalyst CRE, our mission is to revolutionize commercial real estate transactions and investments through the integration of advanced data science and first principles thinking. We're driven by resolute faith in the combined power of data, predictive analytics, and passion to transform layers of CRE inefficiencies. Our process is different at every layer, enabling outcomes and gains that others find difficult to fathom. Join a team where excellence, integrity, and value creation for our clients, investors, and communities are at the heart of everything we do.
Role Overview:
We're seeking an experienced Multifamily brokerage leader to serve as our VP of Multifamily Value Creation Advisory. The role will lead solicitation, prospect conversion, and successful execution of advisory engagements in multifamily 1) Investment Sales, 2) Debt Capital Markets Placement, and 3) Asset Management and CapEx Advisory.
Our purpose is to deliver comprehensive, 360-degree, tangible value-add to multifamily owners & borrowers in all primary vectors that impact property value maximization and enhancement.
The Advisory leader l will act as a player-coach - 1) driving conversion of engaged prospects, 2) leading the execution of engagements, and 3) co-leading, alongside ACCRE’s executive team, the build-out of processes and team to enable rapid scaling of the business.
Key Responsibilities:
Cataloging the unique needs and challenges of engaged prospects and effectively communicating how ACCRE’s unique advisory capabilities and value-creation process can aid in their journeys.
Converting prospects to engaged clients and negotiating engagements
Leading the execution of engagements (asset sales, debt placements, and asset management advisory) with assistance from current and future team members.
Co-leading growth of Advisory team to enable rapid, structured, methodical scaling of the Advisory platform.
Developing structured processes and systems that expand ACCRE’s capabilities, enhance efficiency, and continuously enhance quality and consistency of client value-maximization outcomes.
Open to regular travel to meet high-impact prospects and clients at conferences and their respective home markets.
Engaged in all aspects of pre- and post-commitment investor relationship management.
Sounds like a fit for you or someone you know? Apply now!