As real estate markets, particularly in Europe and the USA, continue to react to rapidly rising interest rates, the equally weighted IRR of the eight funds launched in 2020 decreased by more than six percentage points to 3.4% in Q1 from 9.7% in Q4 2022.
The fourteenth Global IRR Index consultation release includes 346 closed end funds across vintages from pre-2002 to 2021. All of these 346 funds follow a non-core strategy as defined by their managers and include 305 value added and 41 opportunity funds.
Key highlights:
- The two strongest vintage groups are still represented by funds launched before 2002 and between 2011-2013. They posted average IRRs of 14.7% and 13.2%, respectively.
- The 2005-2007 vintage group launched immediately before the GFC delivered the lowest performance with an equally weighted IRR of just 1.2%.
- Funds in the 2011-2013 and 2014-2016 cohorts focused on Asia Pacific have delivered IRRs of 16.3% and 14.5%, respectively. For European funds, the funds launched in 2014-2016 outperform, with an IRR of 10.9%. However, the best performing vintage group continues to be the USA’s 2008-2010 cohort which has delivered an equally weighted IRR of 18.7%.
- With the introduction of a 2017-19 vintage this quarter, there are now five separate vintage groups of funds launched after 2007.
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Global Internal Rate of Return (IRR) Quarterly Index
Last updated on 01 Oct 2024
The first Global IRR Index provides data on the performance of value added and opportunity strategy closed end non-listed real estate funds in Asia Pacific, Europe and the US.