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.

During the bull market of 2002 to 2007, investors and managers supported the creation of a number of large, open-end, value-added funds. The attractiveness of this format lay in its ability to provide investors with a platform for achieving higher returns while also providing the opportunity for liquidity.

After three years of dismal returns and a near-death experience in early 2009, REITs ended the year on solid ground. For all of 2009, REITs on the FTSE NAREIT Equity REIT Index gained 28 percent, making a comeback after losing nearly 38 percent in 2008.