The fund industry has absorbed many regulatory reforms in a decade, most notably with the AIFMD first and the increased level of risk management, monitoring and reporting required from both legislators and professional investors. From a very liberal world of real estate private equity investment in the 2000s to the highly regulated fund industry as we know it today, a number of reorganisation steps have been undertaken and new standards have been set when it comes to the expectations of investors.
The 2020s are starting with a massive change of paradigm for the real estate fund industry — not only because of the current pandemic, which will no doubt redefine economies and the globalised society. New acronyms have been flourishing over the last five years, starting with the United Nations' adoption of the 2030 Sustainable Development Goals (UN SDG). Real estate asset managers cannot put these goals aside, as the private sector is also fully aware that it is accountable, alongside governments, for our future on our planet.
Article first published in AGEFI Luxembourg, November 2020.