PDIs DEFINED
Portfolio Diversifying Investments
The IPA supports increased access to investment strategies with low correlation to the equity markets: lifecycle real estate investment trusts (Lifecycle REITs), net asset value (NAV) REITs, business development companies (BDCs), interval funds, closed-end funds and direct participation programs (DPPs).
PDI Industry Reach
The IPA supports increased access to investment strategies with low correlation to the broader markets such as: non-listed real estate investment trusts (REITs), business development companies (BDCs), interval funds, closed-end funds, opportunity zones funds, DSTs/1031 Exchanges, and other private placements.
Total Assets Held by
95
BILLION
Total Assets Held by
Interval Funds
27
BILLION
Total Assets Held by
BDCs
20.5
BILLION
Total assets held by
DSTs/1031 Exchanges
7
BILLION
Portfolio Diversifying Investments
Real Estate Investment Trust (REIT)
Lifecycle REITs (defined closing) or NAV REITs (perpetual life) can provide an individual investor with regular income based on the underlying cash ows of commercial real estate properties. REITs offer investment opportunities across a range property types – including, of ce, retail, industrial, self-storage, medical, multi- family and mortgages – all bene ting from experienced professional commercial real estate asset management.
Business Development Company (BDC)
BDCs were first created by Congress in 1980 to provide growth capital to small, typically private companies. BDCs offer institutional quality asset management of a portfolio of debt or equity investments that can generate income for individual investors. Most BDCs elect to be treated as Registered Investment Companies (RICs) for tax purposes and must distribute 90% of their taxable income to shareholders each year, enabling investors to benefit from the underlying portfolio.
Interval Fund
Interval funds can invest across direct real estate, public REITs and debt instruments, and are regulated under the Investment Company Act of 1940. Through active management of a portfolio of public and private assets, interval funds are designed to adapt to market conditions, such as interest rate volatility, inflation and property value fluctuations. Fund investment managers typically make periodic repurchase offers to shareholders every three, six, or twelve months.
Direct Participation Program (DPP)
DPPs also enable clients to invest in limited partnerships, such as 1031 like-kind exchange properties, equipment leasing programs or energy exploration and development companies.