Real Estate Fund Investment Model

The model blends eight to twelve assets into a single portfolio, so cash flow is driven by aggregate deployment and exit timing rather than per-property detail. Capital is invested over four years—15%, 30%, 35%, then 20%—reaching full deployment at $500M.

• Assets are assumed held about six years, so exits begin in Year 6. Two revenue streams feed the fund: annual yield on the cost basis of assets still held, and gross proceeds when assets are sold.
• Yield is applied only to held assets, meaning it naturally declines as exits occur. Exit proceeds depend on the cost basis of exiting assets multiplied by a blended exit multiple, with the exit schedule governed by three assumption cells that must sum to no more than 100%.

The model links nine sheets in a deliberate sequence. Assumptions feed an asset rollup that tracks deployment, cost basis, yield, and exits by year.

• That rollup supplies the fund cash flow statement, which combines yield, new deployments, exit proceeds, management fees, operating expenses, and subscription-line activity before calculating capital calls. The subscription line sits alongside, rolling forward drawdowns and repayments sourced only from exit proceeds.
• Positive net cash flow after calls flows into the European whole-fund waterfall, which pays return of capital, then a compounded preferred return, then a catch-up, then an 80/20 split. Fund NAV is built separately as a balance—cost basis of held assets plus unrealised gain—and feeds the returns sheet alongside the waterfall distributions.

The returns sheet produces LP net IRR, GP net IRR, TVPI, DPI, RVPI, and LP net MOIC. Because the waterfall is whole-fund, LP net IRR derives from LP capital calls as negative cash flows and LP distributions as positive ones after fees and carry.

• NAV is a balance recalculated each year, not a running flow, so unrealised gain does not linger after assets are sold; by Year 10, cost basis and unrealised gain both reach zero and TVPI equals DPI.
• A checks sheet validates ten relationships, including cumulative exit percentage never exceeding 100%, sub-line balance never going negative and repaying to roughly zero at wind-up, capital calls staying within fund size, and gross IRR exceeding LP net IRR after fee and carry deductions.

This template is designed for GP fundraising decks, LP due diligence, and fee or carry negotiations. It lets a reader test how management fee step-down from committed capital to NAV affects net outcomes, how subscription-line usage defers LP calls and compresses early IRR, and how exit concentration in Years 6 through 8 shapes the J-curve and DPI trajectory.

• The model also shows the fund-level cost stack: a 1.5% investment-period fee, a 1.0% post-investment fee on held NAV, operating expenses, and sub-line interest and unused fees. The public download is a values-only preview, not a live model, so it illustrates the relationships and assumptions rather than recalculating automatically.
• It does not segment individual properties or model asset-level debt.