Closed Ended Funds in Real Estate
2. The fund has a pre-determined finite maximum life. This may be determined as a basic time horizon with the possibility of extension up to the pre-determined maximum life at the discretion of fund manager in order to optimize exit strategies. Usually, there is a first closing for initial equity commitments. The final closing sets the end of the any further capital raising efforts. 3. There is limited liquidity as redemption of investors interests occurs upon the termination of the fund or at interim periods of over 12 months notice; however, investors wishing to cash out may sell their interests to other investors after the approval of course of the fund manager.
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