Why Private CRE

Private investments are investments in assets, which are not traded in regulated or public markets and include investments in unlisted companies as well as privately owned real estate. In recent years, institutional investors have increased their exposure to asset classes other than listed equities and fixed income securities, such as property, private equity and infrastructure.

Private investing in commercial real estate can either take the form of direct investment (i.e. direct acquisition of properties) or indirect investment, via a private fund. Many investors eschew investing directly in real estate assets due to the large amount of capital required to build a diversified portfolio and the expertise and staff needed to analyze and monitor the assets on an ongoing basis. Private funds are often considered because they typically offer similar benefits to that of direct investments without the high barrier to entry, time commitment or management headaches.

Private investment funds offer an important investment portfolio enhancement tool as they give you access to alternative asset classes and allow the effective management of risk through portfolio diversification as well as enhanced returns.