It is important to understand the value of each fund investment style and when to use them

Institutional real estate private funds typically come in a number of investment styles. Core funds embody a defensive, buy-and-hold strategy. In contrast, value-add funds seek extra returns through redevelopment, repositioning, and active management. Opportunistic funds, carrying the highest risk, target distressed assets, developments, and mergers and acquisitions. Despite some efforts, a universal definition of these styles remains elusive. 

There has been a lot of discussions about investment styles within the real estate industry. For example, Bollinger and Pagliari (2019) posited that core funds are superior, arguing that leveraging core investments outperforms investing in non-core funds.

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