INREV launches fund of fund survey to improve due diligence

The European association for investors in non-listed real estate funds (INREV) has launched a new fund of fund due diligence questionnaire to enable investors to compare and analyse information on fund offerings more efficiently. The survey also includes a separate section on multi-manager accounts.

INREV said the initiative was undertaken to improve the overall due diligence and decision-making process for investors considering capital allocations to funds of funds. It will enable fund of fund managers and multi-managers to gather and present information on their funds in a consistent manner that meets the needs of all potential new investors interested in their funds.

The new questionnaire extends the scope of INREV’s existing standard Due Diligence Questionnaire for traditional non-listed real estate funds, taking particular account of issues of corporate governance. For example, the new questionnaire includes detailed questions about the financial management of the parent funds themselves, as well as questions on other considerations such as potential conflicts of interest for fund of fund managers acting for specific investors.

'This questionnaire advances the due diligence process for investors in funds of funds considerably and it can now be a much more robust and consistent approach. I think the added transparency it will bring to the sector will broaden the appeal of non-listed real estate funds to investors who may not currently be looking at this asset class,' said Erwin Stouthamer, INREV management board member and managing director of Composition Capital Partners.