Real Estate Funds & AIFs (Cat II/III)
Institutional-style strategies for HNIs: development finance, pre‑leased portfolios, special situations.
12–18% IRR targetLock‑in 5–7 yrsHNIs only
How They Work
- Pooled vehicles invest in debt/equity of RE projects or portfolios
- Returns via interest, rentals, and exits; IRR targets not guaranteed
Risks
- Project delays, regulatory changes, refinancing risk
- Illiquidity, manager selection critical
Fees & Tax
Management fees + carry; pass-through taxation in many cases; check PPM.
Education only; not investment advice. Real estate is illiquid and location-specific; do independent due diligence.