INREV study finds high number of terminating funds
The Fund Terminations Study 2016 from INREV, the European Association for Investors in Non-Listed Real Estate Vehicles, shows that 72 non-listed Europe-focused funds are scheduled to terminate over the next two years, representing a total of €11 billion of NAV returning to the market. The study provides an analysis of the closed-end funds within the INREV Vehicles Universe that are due to terminate over the 2009 to 2019 period.
29 funds are due to terminate this year and 29 next year, and a further 14 are scheduled for 2018. These figures are down from the 2015 total of 36 funds, INREV says, suggesting that terminations have now peaked following a high number of fund launches between 2005 and 2007. The 2017 terminations, representing €6.4 billion of NAV, include a number of larger-than-average funds.
For the third year running, liquidation was the most preferred form of termination, chosen by 72 percent of those respondents who have made a decision, followed by rol