Institutional investors who are looking to add commercial property to their investment portfolios have a number of options and strategies to consider. The first funds of funds were launched in the 1980s, capturing the attention of investors who were looking to diversify their real estate investment portfolios, particularly in property markets like Europe and Asia that were less accessible to smaller investors, or of investors who were new to the commercial real estate game and were looking for an easier way in. Funds of funds and multi-manager accounts really started to take off in the early 2000s, and many vehicles today are approaching their final close on fundraising. But a look at the overall risk/return environment in the period following the global financial crisis shows that the viability of multi-manager fundraising and fund of funds investment strategies may be called into question.

A history of investment style

Funds of funds and multi