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Performance determinants of European private equity real estate funds

Giacomo Morri (Department of Corporate Finance and Real Estate, SDA Bocconi School of Management, Milano, Italy)
Ugo Perini (Bocconi University, Milan, Italy)
Rachele Anconetani (Department of Corporate Finance and Real Estate, SDA Bocconi School of Management, Milano, Italy)

Journal of European Real Estate Research

ISSN: 1753-9269

Article publication date: 5 May 2021

Issue publication date: 2 August 2021




The paper aims to investigate the performance determinants of European non-listed private equity real estate funds between 2001 and 2014.


Using a sample of 363 funds collected from the Inrev database, the analysis evaluated the impact of fees and other intrinsic characteristics of these funds, such as leverage, size and duration, on the funds’ performance, intending to enhance the understanding underlying their relationship.


The findings show a negative relationship between the return of the funds and redemption fee, performance fee and management fee. Conversely, marketing fees have a positive effect on performance. When analyzing the investment style, the results reveal inhomogeneous behaviors of leverage on funds’ performance. This variable has a positive impact on the return in core funds, while there is a negative relationship in value-added investments. Finally, the emphasis on the global financial crisis shows that the effects of the independent variables on the performance do not significantly change in different economic cycles.

Practical implications

The practical implication of the research is to understand whether an investor can direct its resources in a fund, leveraging on certain intrinsic characteristics that can be observed a priori.


Even if there is a considerable body of literature on determinants of performance in European non-listed real estate funds, little research has analyzed the role of fees in driving their results. Besides, this paper takes advantage of observations from different investment styles to emphasize the impact of higher or lower risk profiles and from the full economic cycle to understand the effects of the crisis period.



Morri, G., Perini, U. and Anconetani, R. (2021), "Performance determinants of European private equity real estate funds", Journal of European Real Estate Research, Vol. 14 No. 2, pp. 209-228.



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