IVG signals end of new business for private fund unit

Troubled German listed property giant IVG has announced that it is discontinuing all new business for its IVG Private Funds division.

The division was responsible for developing and selling closed-end real estate funds within the private customer business.

IVG attributed the decision to a decline in demand for closed-end real estate funds among investors and changed legal and sales structures, 'resulting in a lack of long-term profitability of this division'.

The management of IVG's existing private funds, including the EuroSelect range, will not be affected by this decision. The existing funds have assets under management of €3.4 bn and around 63,000 investors.

IVG's institutional fund business, which had €11.8 bn of assets under management at end-2012, will also continue unaffected.