Realized 1031 Glossary of Terms

Private Equity Real Estate Funds

Written by The Realized Team | Jun 22, 2022 12:00:00 PM

Private equity real estate funds are an asset class consisting of equity and debt investments in property. These types of funds usually involve active management from private equity entities, and follow low-risk to high-risk strategies.

Private equity real estate funds typically gather the necessary capital through collective investment schemes, pooling investments from a number of investors. The life of a particular real estate fund varies, but historically a fund lasts for about ten-years, consisting of a 2-3 year investment period and holding period thereafter. During this holding period, the properties held by the fund will be actively managed until sold.