As market conditions remained weak across Europe in the first quarter of 2023, the IRR performance of all vintages declined further.
Key highlights
- The weighted average IRR of the youngest cohort of vehicles which closed between 2020 and 2022 decreased by 54 bps in Q1 2023 to 3.3%.
- The cohort of 29 funds launched into favourable market conditions between 2017 and 2019 remains the strongest performing group over the last 20 years. The pooled return of this larger cohort decreased from 11.7% in Q4 2022 to 9.9% in Q1 2023.
- In the most recent cohort launched between 2020 and 2023 three core vehicles have produced a pooled IRR of 5.1% outperforming three non-core funds by almost 4.5 percentage points. This reverses the recent trend for non-core funds to outperform.
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INREV Internal Rate of Return (IRR) Quarterly Index
Last updated on 10 Sep 2024
The IRR Index measures the since inception internal rate of return performance of European closed end non-listed real estate vehicles. Performance is measured net of fees and costs, and is computed on both a pooled return basis and an equally weighted basis.