Who’s Your Neighbour?
During the recent growth phase, the primary concern of fund managers and investors was to pool new vehicles; today, both are faced with the requirement to manage existing portfolios and vehicles. One important lesson learned in fund selection — and an aspect that has gained in significance — is that the structure and composition of the investor base counts. In times of scarce liquidity, limited market growth and shifting fund strategies, investors in a pooled fund may have divergent interests, which become unmistakeable in difficult market conditions. Consequently, an analysis of the investor base is essential before investors decide to commit to long-term, unlisted real estate funds.