Liquidity and Strategic Capital Solutions
Institutions have long accepted illiquidity in private real estate in exchange for a presumed premium. This brief asks whether that premium is actually being paid, drawing on REIT discounts to NAV, 26 years of pension-plan return data, and the 2022–24 redemption experience, and introduces IIM's Public Market Test: five questions every private commitment should answer before surrendering liquidity.
A companion to Repricing Illiquidity. If private real estate must clear the public alternative to justify its illiquidity, one strategy plausibly does: secondaries. With record 2025 transaction volume and LP stakes pricing near 70% of NAV, this brief examines why the discount may represent genuine compensation for supplying liquidity, and what disciplined underwriting of it requires.
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