How to Find Liquidity in Private Real Estate Funds

This article argues that real estate has become an integral component of diversified investment portfolios, and that exposure can be obtained via private equity structures. Institutionally sponsored, these funds can expose the investor to core, core-plus, value-added, opportunistic, joint-venture, private placement and retail syndication investment strategies. The initiators of these funds have devoted significant time and attention to the science of aggregating equity capital. A lesser amount of attention, however, has been focused on establishing a credible liquidity mechanism should an investor seek to exit the structure before the planned liquidation of the underlying portfolio.