The Impact of Own, Rival and Market Effects on Real Estate Private Equity Fund Performance

Abstract

Real estate private equity has become an increasingly favored asset class for institutional investors. This topic is important to academic researchers and industry professionals because it constitutes a large part of the global economy. This research paper will lay out a brief background of the real estate private equity industry and will explore the factors affecting real estate private equity fund performance through the lens of three factors: own effects, rival effects and market effects. The findings and implications from the above analysis will be examined and opined upon. This field is particularly interesting because relatively little research has been done on the real estate private equity landscape, given the limited data that is publically available. The majority of research has been focused on public real estate equities, as it composes a larger portion of the overall economy and is accessible to both professional and retail investors

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