New NCREIF/CREFC Open-End Debt Fund aggregate offers transparency to open-end debt fund performance

The CRE Finance Council (CREFC) has been working with the National Council of Real Estate Investment Fiduciaries (NCREIF) to introduce a measure tracking the performance of open-end debt funds financing commercial and multifamily real estate.

The NCREIF/CREFC Open-End Debt Fund Aggregate will be offered in a draft “consultation” format for one year to allow for industry feedback before it is formally introduced.

This measure being developed by NCREIF and CREFC is expected to support liquidity in commercial real estate as it will enhance investor understanding and build interest in private real estate open-end debt funds.

The Debt Aggregate currently includes 15 funds from 13 managers that operate open-end debt funds with manager self-reported styles including core, core-plus and value-add. As a result, the Debt Aggregate is not an index or a benchmark and serves more as a research resource to build transparency and understanding of CRE debt as an investment.