NCREIF/CREFC Open-End Debt Fund Aggregate

CREFC has teamed up with NCREIF to produce and promote the NCREIF/CREFC Open-end Debt Fund Aggregate (the “Debt Aggregate”). In short, this product will deliver a fund-level compilation of open-end debt funds providing financing to commercial and multifamily real estate borrowers/owners. The Debt Aggregate will be issued in a draft “consultation” format for at least one year, which allows time for industry feedback before it is rolled out as an official product.

For questions or to get involved, contact Lisa Pendergast

NCREIF/CREFC Open-end Debt Fund Aggregate Second Quarter 2023 Consultation Edition


Overview of Debt Fund Index
(presentation slides from CREFC's September 28, 2023 Capital Markets Conference)   

Watch the Video
(video replay from CREFC's September 28, 2023 Capital Markets Conference)   

Latest News

News

NCREIF and CREFC Release Second Quarter 2023 Debt Fund Aggregate Report 

October 11, 2023

 

The National Council of Real Estate Investment Fiduciaries (NCREIF) and the CRE Finance Council (CREFC) released their second quarter “NCREIF/CREFC Open-End Debt Fund Aggregate: Consultation Edition.”

The NCREIF/CREFC Open-End Debt Fund Aggregate is a powerful tool that informs potential fund investors on the rewards and risks of private real estate debt funds. The report will be issued in a draft ‘consultation’ format for at least one year with the goal of obtaining industry feedback to be incorporated before it is introduced as an official industry product.

About the NCREIF/CREFC Open-End Debt Fund Aggregate

NCREIF and CREFC believe that the Open-End Debt Fund Aggregate will serve to enhance investor 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.

The NCREIF/CREFC Open-End Debt Fund Aggregate tracks funds with various strategies and styles, from core to value-add, as reported by the managers. The performance metric is a time-weighted return. The returns from each fund are equally weighted across the funds since the aggregate contains a few large funds that would dominate the results if value weighted. Importantly, the ‘Aggregate’ is not yet a benchmark. It does, however, represent a major step toward the goal of creating a more focused index/benchmark of funds that meets certain investment inclusion criteria, which will be determined going forward. The aggregate will be published quarterly. Results will never reveal individual fund performance.

NCREIF and CREFC view their multi-year collaboration as a project by the industry and for the industry that has been in the works since 2018 with input from the data contributing managers, investors, and consultants.

About NCREIF and CREFC

The introduction of the NCREIF/CREFC Open-End Debt Fund Aggregate represents a collaboration between NCREIF and CREFC. It furthers both NCREIF’s and CREFC’s missions:

“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.

“CREFC is the trade association for the commercial real estate finance industry. CREFC 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 and tools for market participants. Member firms include balance sheet and securitized lenders, loan and bond investors, private equity firms, servicers, and rating agencies, among others.”

If you have any questions or need additional information, please contact:

Lisa Pendergast, Executive Director, Commercial Real Estate Finance Council (CREFC), lpendergast@crefc.org, 646-884-7570.


Contact  

Lisa Pendergast
Executive Director
646.884.7570


The information provided herein is general in nature and for educational purposes only. CRE Finance Council makes no representations as to the accuracy, completeness, timeliness, validity, usefulness, or suitability of the information provided. The information should not be relied upon or interpreted as legal, financial, tax, accounting, investment, commercial or other advice, and CRE Finance Council disclaims all liability for any such reliance. © 2023 CRE Finance Council. All rights reserved.
Alert - NCREIF and CREFC Release Second Quarter 2023 Debt Fund Aggregate Report
October 11, 2023
The National Council of Real Estate Investment Fiduciaries (NCREIF) and the CRE Finance Council (CREFC) released their second quarter “NCREIF/CREFC Open-End Debt Fund Aggregate: Consultation Edition.”

News

New NCREIF/CREFC Open-End Debt Fund Aggregate Offers Transparency to Open-End Debt Fund Performance

August 7, 2023 

New measure tracking performance of open-end debt funds financing commercial real estate to support CRE debt market liquidity

NEW YORK — Aug. 7, 2023 — The CRE Finance Council (CREFC) announced today that it is working with the National Council of Real Estate Investment Fiduciaries (NCREIF) to introduce a measure tracking the performance of open-end debt funds financing commercial and multifamily real estate. The NCREIF/CREFC Open-End Debt Fund Aggregate will be offered in a draft “consultation” format for one year to allow for industry feedback before it is formally introduced.

This measure being developed by NCREIF and CREFC is expected to support liquidity in commercial real estate as it will enhance investor understanding and build interest in private real estate open-end debt funds.

The Debt Aggregate currently includes 15 funds from 13 managers that operate open-end debt funds with manager self-reported styles including core, core-plus, and value-add. As a result, the Debt Aggregate is not an index or a benchmark and serves more as a research resource to build transparency and understanding of CRE debt as an investment.

For investment managers to be included in the NCREIF/CREFC Open-End Debt Fund Aggregate, they must:

  • Offer an open-end fund product to institutional investors that provides debt for predominantly private U.S. commercial real estate,
  • Calculate quarterly net asset values and time-weighted returns on a market-value basis,
  • Agree to submit all requested data within a required time frame,
  • Be a NCREIF data contributing member once the debt aggregate is formally introduced to the market.

The second phase in the development of this measure will include style benchmarks that establish parameters for core, core-plus, and value-add investment strategies. As part of this effort, CREFC will work closely with NCREIF/PREA (Pension Real Estate Association) reporting metrics that brought standardization and transparency to the institutional private equity industry, which now will include debt funds.

About CREFC

The CRE Finance Council (CREFC) is the trade association for the $5.6 trillion commercial real estate finance industry with member firms including balance sheet and securitized lenders, loan and bond investors, private equity firms, servicers, and rating agencies, among others. CREFC promotes liquidity, transparency, and efficiency in the commercial real estate finance debt markets, and acts 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.

About NCREIF

The National Council of Real Estate Investment Fiduciaries (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.

If you have any questions or need additional information, please contact:

Lisa Pendergast, Executive Director, Commercial Real Estate Finance Council (CREFC), lpendergast@crefc.org, 646-884-7570.

Dan Dierking, President, National Council of Real Estate Investment Fiduciaries (NCREIF), ddierking@ncreif.org, 312-819-5881.

For media inquiries, please contact:

Aleksandrs Rozens at arozens@crefc.org, 646-884-7567.

Contact

Lisa Pendergast
Executive Director
646.884.7570
lpendergast@crefc.org

Dan Dierking
President
National Council of Real Estate Investment Fiduciaries (NCREIF)
312-819-5881
ddierking@ncreif.org

Aleksandrs Rozens
Senior Director, Communications
ARozens@crefc.org
The information provided herein is general in nature and for educational purposes only. CRE Finance Council makes no representations as to the accuracy, completeness, timeliness, validity, usefulness, or suitability of the information provided. The information should not be relied upon or interpreted as legal, financial, tax, accounting, investment, commercial or other advice, and CRE Finance Council disclaims all liability for any such reliance. © 2023 CRE Finance Council. All rights reserved.
New NCREIF/CREFC Open-End Debt Fund Aggregate Offers Transparency to Open-End Debt Fund Performance
August 7, 2023
NEW YORK — Aug. 7, 2023 — The CRE Finance Council (CREFC) announced today that it is working with the National Council of Real Estate Investment Fiduciaries (NCREIF) to introduce a measure tracking the performance of open-end debt funds financing com