Research

Why Smaller Real Estate Funds Can Offer Investors Big Advantages

While larger private real estate funds may enjoy the benefits of scale and broad resources, empirical data highlights the compelling advantages smaller real estate funds offer investors and the impact these advantages may have on fund performance. According to a Preqin analysis of over 1,200 funds that originated between 2009 and 2019, funds sized at $650M or less generated higher median net IRRs than funds sized at more than $650M across a threeyear horizon (+227 bps), five-year horizon (+327 bps), and lifetime horizon (+277 bps).1 Preqin’s analysis and other data on this subject highlight several advantages smaller funds have that can help them generate substantive returns.

Click here to read the report.

Research contact:
Debo Ayeni

Research sponsored by ABR Capital Partners

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