Welcome to another episode of Goldman Sachs Exchanges, great investors.

I'm Allison Mask, 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 billion

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 40 years, and I'm excited to...

You look much better than I do, over those 40 years.

I will accept that compliment.

Don and I have known each other for almost 40 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.

So, Don, thanks so much for being here. Thank you for having me.

Nice to be included in a great investors group. That's very kind of you. Well, you're one of the

greatest. Greatest. So let's start in 2012 when you left Goldman Sachs to create predium. 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 40 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 old enough to know, and the dot

com. And so each of those crises really ended up reshaping the markets, 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

...