In Q3, as central banks maintained base rates at elevated levels by recent standards, real estate markets, particularly in Europe and the USA continued to react adversely. The since inception IRR of funds launched between 2017 and 2019 fell by 210 bps to 4.80%, from 6.90% three months earlier.
This Global IRR Index consultation release monitors 381 closed end funds across vintages from pre-2001 to 2022. All of these 381 funds follow a non-core strategy as defined by their managers and include 333 value added and 48 opportunistic funds.
Key highlights:
- This release of the Global IRR Index features 70 Asia Pacific funds, 145 European and 166 funds focused on the USA.
- The two strongest vintage groups are still represented by funds launched before 2001 and between 2011 and 2013. They posted average IRRs of 14.7% and 14.2%, respectively.
- The post-2019 vintage group with funds launched in the years before the current downturn delivered the lowest performance with an equally weighted IRR of -1.8%.
- The best-performing vintage group continues to be the USA’s 2008-2010 cohort which has delivered an equally weighted IRR of 18.7%.
The Global Internal Rate of Return (IRR) Index is jointly produced by INREV, ANREV and NCREIF to measure the IRR performance of closed end non-listed real estate vehicles since inception on a global scale.
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Global Internal Rate of Return (IRR) Quarterly Index
Last updated on 23 Apr 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.