Interview: Keith Burns, Managing Partner, Nexsen Pruet

Keith Burns

Managing Partner Nexsen Pruet

How has real estate evolved over the past year from a legal perspective?

Real estate has been a “haves” and “have-nots” story over the past year. Real estate related to logistics and the supply chain has really taken off, driven significantly by e-commerce and the need for increased warehousing. The supply chain has been disrupted and has created some strong demand for real estate. The other segment that has shown considerable acceleration is residential real estate. Developers who create residential building lots for builders and the builders who are building on them cannot get product quickly enough. The demand for housing is unlike anything we’ve seen since 20067. The good news is that this demand is supported by actual jobs and wages. In contrast, there has not been nearly so much office and retail development. Those niches are still a bit nervous. Hotel development is nonexistent.

What unexpected shifts in demand for your services do you see emerging?

There are two trends that we’ve detected. First, the COVID-19 trend is that the court systems and many of the regulatory bodies have been slowed over the last year. Governments have been working from home. Very few places have held jury trials. Court systems are reluctant to have people in-person and the technology has not kept up as much as one might hope. Over the next year or 18 months, we anticipate a lasting backlog in regulatory and court work. The floodgates will open because of substantial demand. The need for that legal work did not stop during COVID.

Second, every time we have an administration change at the federal level, there is a new take on regulations and how they are to be interpreted, a new take on what regulations need to be adopted or repealed. Those regulatory changes, those enforcement changes are going to create demand for legal services as people have regulations applied to them differently and as new regulations apply.

Raleigh-Durham’s thriving professional services sector is key in promoting economic growth and expediting strategic partnerships through the local business community.

as ordinary income, gains from brokerage accounts are taxed at capital gains rates. The latter can vary depending on income level and filing status. Moreover, federal income tax brackets and many state tax systems are tiered. The more taxable income received in a year, the bigger the cut to the government. Tax-filing status and income are sizable factors in determining the amount of money kept.

Navigating these issues can be complicated, which is where wealth management funds come in. Both mature and nascent funds are finding success in the region as the economy nears pre-COVID levels of activity. Securities filings in the Triangle are raising millions as they scout for the next high-return deals. Case in point: in early 2021, Raleigh-based Anchor Capital crossed the $100 million mark in assets under management (AUM). Meanwhile, KDI Capital Partners’ Outstanding Business Limited Partnership Fund closed on more than $160.9 million.

The merger and acquisition space has also been quite busy, as showcased by wealth management heavyweight Captrust’s planning for an M&A-heavy 2021. In 2020 alone, the overseer of $50 billion in AUM and $409 billion in assets under advisement, closed seven acquisitions and is aiming at another eight deals before the end of 2021. Fred Hutchison, managing partner at Hutchison