Real estate private equity funds can focus investment on anything from "Class A" real estate to redevelopment in the urban center.On the risk-return spectrum,which of the following private equity fund categories tends to have a heavier development component and
Often involves investment in riskier property types and locations?

Question

Quizplus · Accepted Answer

The opportunistic private equity fund category tends to have a heavier development component and often involves investment in riskier property types and locations. The core fund focuses on stabilized, income-producing assets with low risk, while the value-added fund targets underperforming assets that can be improved with strategic management and renovations. The full-platform fund is a broader category that includes investing in all types of real estate, including development, value-add, and core properties.

Real Estate Private Equity Funds Can Focus Investment on Anything