We are pleased to provide you with the NCREIF/CREFC Open-End Debt Fund Aggregate Report for Fourth Quarter 2023. The full Membership Report is located in the CREFC Resource Center for Members only. This Snapshot Report is available to the public and can be found on the CREFC website.

For any questions or suggestions and/or if you wish to be a debt fund contributor to the Aggregate please contact Lisa Pendergast.

The NCREIF/CREFC Open-end Debt Fund Aggregate

The NCREIF/CREFC Open-end Debt Fund Aggregate is a fund-level aggregate comprising open-end funds that provide credit and financing to borrowers who own commercial real estate. This report will be issued in a draft “consultation” format for at least one year to obtain industry feedback before it is rolled out as an official NCREIF/CREFC product.

About the NCREIF/CREFC Open-end Debt Fund Aggregate

• Is a project by the industry for the industry that has been in the works for several years with input from NCREIF, CREFC leaders and data contributing managers, investors, consultants and CREFC.

• Is anticipated to be published quarterly. Results will never reveal individual fund performance.

• Is NOT a BENCHMARK, yet, but is a major step toward the goal of creating a more focused index/benchmark of funds that meets certain investment inclusion criteria (which are to be determined).

• Will enhance investors’ interest and understanding of the rewards and risks of private real estate debt funds, which may lead to increased allocations to debt, benefiting managers, investors, and commercial real estate finance industry professionals.

• Contains funds with various strategies and styles ranging from core to value-add, as reported by the managers. The performance metric is a time-weighted return. The returns are equal-weighted across the funds since the aggregate contains a few large funds that would dominate the results if it they were value-weighted.

• Furthers NCREIF’s and CREFC’s mission:
• CREFC is the trade association for the commercial real estate finance industry. It promotes liquidity, transparency, and efficiency in the commercial real estate finance markets. It does this by acting as a legislative and regulatory advocate for the industry, playing a vital role in setting market standards and best practices, and providing education for market participants. Member firms include balance sheet and securitized lenders, loan and bond investors, private equity firms, servicers, and rating agencies, among others.
• NCREIF is a member-driven, not-for-profit association that improves private real estate investment industry knowledge by providing transparent and consistent data, performance measurement, analytics, standards, and education.

Fund Inclusion

Investment Managers must:

• Offer an open-end debt fund product to institutional investors that includes predominantly private U.S. commercial and multifamily real estate debt. Specifically, 80% of total assets must be invested in private commercial and multifamily debt real estate.

• Calculate quarterly net asset values and returns on a market-value basis.

• Agree to submit all requested data and do so within the time frame required.

• Be a NCREIF data contributing member once this becomes an official product.

Funds included have different:

• Structures, strategies, liquidity provisions, dividend, accounting, and valuation policies, all of which affect performance and comparability. As a result, this product is not a benchmark.