Private equity real estate is a term used in investment finance. It belongs to the asset class which consists of debt investment and equity in property. It is the type of investment which actively manages strategies. It helps to reposition or release property that is to be developed. This type of investment is made through private equity real estate fund. This fund is a collective investment scheme which helps to collect capital from investors.

The private real estate fund is a valid 10 year plan with an investment period of 2-3 years after which the properties undergo active asset management and then sold. Three types of strategies that are followed are core plus, value added and opportunistic. Thus the properties which undergo asset management or extensive development with the investor’s capital can be termed as private real estate. Care should be taken before investing in these funds as bad performance might lead to total loss of investments.