Private real estate is a professionally managed fund that invests in real estate. Its appeal is its lower correlation to traditional stocks and bonds which makes private real estate investing an effective portfolio diversifier with attractive inflation-hedging income to compliment traditional fixed income investing.
For more than 40 years, our management teams bring a clear understanding of market dynamics to real estate investment management, with expertise and scale across property types, geographic regions and risk profiles.
US$80 bn
Real estate assets under management
40+
Years investing in real estate
12
Global locations
Data as of 30/06/2025
Investing in private real estate can offer a combination of income, portfolio diversification, attractive returns and lower volatility, making it an attractive option for investors seeking to build wealth and preserve capital over the long term.
10-Year Risk and Return (%)
Chart
For 10-year period ended 30/06/2025.
Sources: Franklin Templeton Capital Markets Insights Group, MSCI, Bloomberg, MSCI Private Capital Solutions and Morningstar. Stocks, bonds, publicly traded REITs and global real estate are respectively represented by the MSCI World GR Index, Bloomberg Global Aggregate Bond Index, FTSE EPRA NAREIT Global REITs Index and MSCI Global Private Real Estate Closed-End Fund Index (Unfrozen; USD). NAREIT uses a 12-month dividend yield and Bloomberg uses a yield-to-worst 10-year average calculated on a historical 12-month income return/dividend yield as of Q2 2025.
For NAREIT All Equity Dividend Yield, please use the dividend Yield on REIT.com.
https://www.reit.com/data-research/reit-indexes/monthly-index-values-returns
Private real estate and publicly traded Real Estate Investment Trusts (REITs) are quite different in terms of investment characteristics, with varying levels of volatility and patterns of return. Historically, private real estate has shown lower correlation to traditional stocks than publicly traded REITs, making it a more effective option for diversifying your investment portfolio.
| Private Real Estate | Publicly Traded REITs |
|---|---|
| Investor makes a direct investment in property | Investor makes indirect investment via shares of a publicly listed real estate company |
| Property is managed directly or through a third-party property manager | Property is operated/managed via that public company |
| Historically lower volatility than publicly traded REITs | Historically higher volatility than private real estate |
Private equity is at a turning point, with investors and advisors exploring the best ways to allocate across sub-strategies. There is a compelling case for private equity secondaries serving as the cornerstone of a core/satellite evergreen model.
Evergreen and closed-ended / drawdown funds offer different paths to private markets - understanding their strengths can help investors optimise allocations.
Benefit Street Partners believes that although stock market volatility is unsettling, it is not a cause for concern in the CRE sector. Instead, we should expect increased demand for CRE debt investments over the coming months and quarters.
The global secondary market has grown over the past three decades primarily because of the increased supply of capital committed to private investment funds, according to Lexington Partners. They believe the backdrop for the secondary market continues to remain attractive.
typically invest in tangible assets that derive value from their substance and physical presence. These include real estate, public and private infrastructure, natural resources, precious metals and commodities.
is a statistical measure of the relationship between two sets of data. When asset prices move together, they are described as positively correlated; when they move opposite to each other, the correlation is described as negative or inverse. If price movements have no relationship to each other, they are described as uncorrelated.
is a risk management strategy that mixes a wide variety of investments within a portfolio. A diversified portfolio contains a mix of distinct asset types and investment vehicles in an attempt at limiting exposure to any single asset or risk.
are partnerships which invest in commercial and/or residential real estate properties.
are raw materials and foodstuffs (examples include gold, silver, wheat, corn and pork bellies) which are typically sold by weight/volume and traded on public exchanges along with futures contracts for deferred purchases or sales.
Investment risks
Real estate investments should be viewed as a long-term investments with limited liquidity and are suitable only for investors who can afford to risk the loss of all or substantially all of such investment.
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