The future of real estate investing: Pretium’s Don Mullen on the rapidly changing asset class

Welcome to another episode of Goldman Sachs Exchanges Great Investors. I'm Allison Masse, chairman of investment banking in Goldman Sachs' global banking and markets business and your host for today's episode. Today, I have the great pleasure of sitting down with Don Mullen. Don is the founder and CEO of Pretium, a real estate focused investment firm with about $57,000,000,000 in assets under management. Before that, he spent about a decade here at Goldman Sachs where he served as head of our securities division's global credit and mortgage business. Don and I have known each other for almost

much better than I do over those forty years. I

will accept that compliment. Don and I have known each other for almost forty years, and I'm excited to hear Don's views on the housing market and in particular his predictions about the future of real estate as an asset class. Mhmm. So Don, thanks so much for being here.

Thank you for having me. And nice to be included in a great investors group. That's very kind of you. Well,

you're you're one of the greaters. Greatists. Very

kind.

So let's start in 02/2012 Mhmm. When you left Goldman Sachs to create Pretium. What did you see at the time that made you want to take that risk?

Sure. I saw a couple of things. I'd say that in those forty years that we just referenced, I had the opportunity to see the savings and loan crisis, the tequila crisis, LTCM, Long Term Capital Management, for those of you who are old enough to know, and the.com. And so each of those crises really ended up reshaping the market's regulatory environment and capitalism a bit itself. And so when the global financial crisis happened, my view about that was that we were going to change the manner in which we lent money for mortgages, that we would be in a position that we had to move 10,000,000 Ameri

true, but