How private real estate funds invest.
Every private real estate fund sits somewhere on a risk-return spectrum, from conservative core income to high-octane opportunistic development. Here is what each strategy means, and the funds we track within it — vintages, and the net-IRR and TVPI they have reported.
Opportunistic funds target the highest returns in private real estate: ground-up development, distressed acquisitions, major repositioning and complex situations. They use the most leverage and take the most risk, aiming for equity-like returns.
Value-add real estate funds buy assets with a fixable problem — under-management, vacancy, deferred capex or an expiring lease — and create value through repositioning before selling. Returns sit between core and opportunistic, with moderate leverage and a defined business plan per asset.
Core funds own stabilised, well-let, high-quality assets in prime locations. They use low leverage and target steady, income-led returns — the most conservative end of the private real-estate risk spectrum.
Real estate debt funds lend against property rather than owning the equity — senior loans, mezzanine and preferred positions. Returns come from interest income and fees, with the borrower's equity absorbing first losses.
Real estate secondaries funds buy existing limited-partner stakes and recapitalise funds, offering earlier liquidity and a more diversified, already-invested portfolio at acquisition.
Diversified real-estate strategies span multiple risk profiles and property types in a single vehicle, or pursue niche approaches that don't map to a single classic bucket.
Fund-level detail lives in the fund performance database (Pro). See also all fund managers.