The Liquidity module promotes best practices and governance in the area of liquidity rights, to make subscription, redemption and pricing mechanisms more transparent. The module gives guidance on winding-up and extending the life of vehicles, as well as defining fair liquidity mechanisms for investors.
While investors need to understand their liquidity rights and obligations when deciding to invest in a vehicle, it’s equally important that managers should act fairly in exercising their own liquidity rights.
The Liquidity module and assessment help investors understand what their rights should be. At the same time they guide managers toward building a liquidity framework that meets best practices, thereby promoting liquidity in their vehicles.
The goal of the secondary markets and liquidity committee is to formulate standardised language for use in the documentation of non-listed real estate vehicles.read more
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Learn more about End of Fund Life? Our report outlines guiding principles and best practices and we also have an in-depth webinar on the subject.
Investors need to fully understand their liquidity rights when investing into a vehicle. INREV therefore establishes common standards of behaviour for managers and investors in non-listed real estate vehicles in the context of the exercise of liquidity rights.
The manner in which equity is subscribed to and redeemed from a vehicle has a material impact on the interests of new and existing investors. Overseeing the establishment of a fair liquidity mechanism and the disclosure of it to investors should be one of the objectives of a vehicle’s corporate governance activities. In some jurisdictions and in relation to certain vehicle structures the mechanism is prescribed by legislation or government regulations. In these cases, full disclosure of the rights, obligations and process should still be considered best practice to ensure the vehicle is suitable for the investor.
INREV’s Liquidity Guidelines are based on a framework of six principles:
If you have any questions please contact the Professional Standards team under email@example.com or phone +31 (0)20 235 8600.