“The truth is rarely pure and never simple.”
Popular narratives:
1. The biggest managers are getting bigger.
2. The biggest managers are the best.
3. UBS's core fund is dead.
One of the largest LP investors reviewed its real estate portfolio in mid-2025.
It had about $500M invested in three big core managers:
-- UBS
-- JP Morgan
-- Blackrock.
By year-end, one would be out.
The performance difference might surprise some people.
---- Sidenote ----
The ODCE core fund index over the last 10 years generated a 4.4% return.
Core plus funds are designed to generate a little extra yield, right?
The biggest name in core plus?
Blackstone Property Partners.
BPP's long-term return? 4%
---- Takeaways ----
Expect more movement from core investors.
Some of the moves will fly in the face of popular narratives.
PS -- If you think this is interesting, wait until we start pulling back the curtain on closed-end vehicles.
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