While some institutions may at least temporarily shy away from new closed-end fund investments, the closed-end model is far from dead. Advisers aiming to raise new funds, however, will need to restructure their vehicles to better accommodate limited partner interests. They also need to explore how to minimize conflicts among fund investors.

As the shell-shocked institutional real estate community ushers in 2010, no shortage of industry professionals are pondering the fate of perhaps its most popular investment model: the closed-end commingled fund. After a couple dismal years witnessing dramatic asset devaluation exacerbated by relatively high risks associated with closed-end fund strategies, it’s no great surprise that some tax-exempt investors, for the moment at least, are looking more favorably toward other models.

“Many investors have become unhappy that they can’t get out of their capital commitments to closed-end funds,” says Tommy Brown, principal with r