Open-end vs Closed-end Private Equity Debt Funds – Structural Considerations

Situs RERC has authored a white paper on the considerations and discrepancies of open-end and closed-end structures investing in CRE debt. The article covers:

  • Fair Value of Investments: transparency in risk evaluation and investor return reporting;
  • Fund Life: either defined or infinite;
  • Liquidity: often, a significant factor in attracting capital;
  • Risk Analysis: aggregating interest rate risk, liquidity risk, credit (default) risk, refinancing risk and more;
  • Valuation Frequency: managing valuation fluctuations as a result of interest rate volatility.

Click here to read the full article.

For more information, please contact Brian Velky.