Michael Zerda, Global Head of Real Estate at Santander - Logic, Risk, and the Search for Asymmetric Reward

This week, I sat down with Michael Zerda to unpack a career that spans private equity real estate, distressed credit, structured capital and some of the most complex investment situations across Europe and the United States.

Michael is Global Head of Real Estate at Santander Alternative Investments and CEO of Deva Capital, the real estate and corporate capital solutions investment arm of the business. Over a 25 year career, he has helped raise more than $5 billion of capital and overseen the deployment of more than $11 billion of equity across more than 200 transactions across Western Europe.

In this conversation, Michael shares the story behind his journey from a Polish immigrant growing up in Texas to becoming a global real estate investor working across debt, equity and special situations. We explore how his early career developed through private equity real estate, distressed debt and high yield investing, and how those experiences shaped the way he approaches market cycles today. 

We discuss why the widely predicted wave of real estate distress following the interest rate shock of 2022 has not materialised in the way many investors expected. Michael explains how stronger bank balance sheets, lower leverage and asset owners holding positions for longer have fundamentally changed the dynamics compared with previous cycles. 

The conversation also explores where stress is actually appearing in the market today. Rather than dramatic distress events, Michael highlights a quieter liquidity squeeze affecting operators whose business models rely on transactions and capital raising. For investors able to deploy flexible capital across debt, structured equity or partnerships, this environment may present significant opportunities. 

Finally, we discuss Michael's current role within Santander Alternative Investments, how the platform integrates real estate investing with corporate special situations, and where he sees opportunities emerging across Europe as markets adjust to the new interest rate environment. 

Key Topics Covered in This Episode

✅ From Poland to Texas

Michael's unconventional journey into global real estate investing.

✅ The Distress That Never Came

Why the expected wave of distressed real estate has taken longer to appear.

✅ Liquidity Stress Beneath the Surface

How fundraising challenges and fewer transactions are impacting operators.

✅ Debt, Equity and Special Situations

Why flexible capital structures are becoming increasingly important.

✅ Where Opportunities Exist in Europe

How different markets are behaving very differently in the current cycle.

EPISODE CHAPTERS

00:00 Introduction

01:08 From Poland to Texas

05:12 Discovering Real Estate Investing

11:04 Early Career in Private Equity Real Estate

19:42 Distressed Debt and Market Cycles

30:11 Why the Distress Wave Never Came

42:05 Liquidity Stress in Real Estate

51:15 Building Deva Capital

57:55 Where Opportunities Exist in Europe

01:02:48 Deep Value Investing in Today's Market

01:07:10 The £500M Investment Question

And of course, I asked Michael the big question:

Who are the People, what Property, and which Place would you invest in if you had £500 million to deploy?

If you have thoughts or questions about this episode, drop them in the comments. I'd love to hear your take.

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