Interval Funds INTERVAL FUNDS INVESTING IN REAL ESTATEAn interval fund is a hybrid investment which provides individual investors access to a diversifiedportfolio of both public and private securities. Put another way, these funds allow individuals to investalongside some the largest institutional investors in the U.S. including major pension funds,endowments and life insurance companies.The 2 interval funds that I have access to are similar in two respects: 1) they both have a larger allocation to private real estate and 2) they both use sub-advisors for their private real estate funds that provide consulting services to clients.PRIVATE REAL ESTATE FUNDSLarge institutions and wealthy individuals ordinarily make their real estate investments through privatereal estate funds. They do this in order to achieve diversification and benefit from the expertise of highlyexperienced managers. But these funds historically have required large minimum amounts, ranging from$1 million to more than $5 million. The solution for all but the wealthiest investors is the interval fundbecause it pools investor money and makes it possible for the individual to participate in multipleprivate real estate funds.PUBLIC REAL ESTATE SECURITIESThese investments include primarily REITs which own real estate and debt, primarily real estate. Theyare publicly traded and therefore may provide liquidity for investors who wish to redeem. Redemption iscurrently offered on a quarterly basis.SUMMARY OF OBJECTIVESCurrent income potential paid on a quarterly basis.Capital appreciation.Low correlation to the stock market and other asset classes.Inflation protection from real estate valuations.