A new survey by RCLCO Fund Advisors reveals a striking disconnect between how institutional investors and fund managers experience real estate co-investment. While 71 percent of investor respondents have participated in co-investments, only half described the experience as positive — and looking ahead, a third expect to reduce future activity compared to just 17 percent who plan to increase it. For managers, the picture looks entirely different: Of the 79 percent who have offered co-investments, 95 percent rated the experience positively and 84 percent intend to keep offering them. Managers are even expanding access, with 70 percent now opening co-investments to outside investors as a relationship-building tool.
The sharpest tension between the two groups centers on fees and performance transparency. Sixty percent of managers consider a half-management-fee/half-promote structure to be market standard, while nearly a third of investors believe no fees should apply — more i
