As real estate markets, particularly in Europe and the USA reacted to rapidly rising interest rates, the equally weighted IRR of the ten funds launched in 2020 decreased to 9.7% in Q4 from 16.8 % in Q3.
The thirteenth Global IRR Index consultation release includes 341 closed end funds across vintages from pre-2002 to 2021. All of these 341 funds follow a non-core strategy as defined by their managers and include 301 value added and 40 opportunity funds.
Key highlights:
- The two strongest vintage groups are 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 delivered the lowest performance with an equally weighted IRR of just 1.3%.
- Funds in the 2011-2013 and 2014-2016 cohorts focused on APAC have delivered IRRs of 16.1% and 17.4%. For European funds the best performing cohort is formed by funds launched 2014-2016 with an IRR of 14.5%. However, the best performing vintage group continues to be provided by the USA’s 2008-2010 cohort which has provided an IRR of 18.7%.
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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.