Strategic Advantages of Investing through OASES

Structural Frictions in Traditional Real Estate Allocations

Despite its role as a cornerstone of real asset strategies, direct real estate continues to underdeliver on key institutional criteria: capital efficiency, liquidity optionality, operational scalability, and portfolio diversification.

OASES addresses four systemic inefficiencies that currently limit real estate’s role in modern institutional portfolios:

1. Capital Lock-In and Rebalancing Inflexibility

Issue: Most direct real estate opportunities require substantial minimum commitments ($250k+), resulting in overexposure to single assets or operators. Impact: This rigidity impedes dynamic asset allocation. In volatile macro environments, allocators are unable to rotate capital in response to risk or opportunity without friction. As cited by the CAIA Association, liquidity-adjusted IRR drops by 20–30% when asset-level exits exceed a 12-month horizon.

2. Exit Illiquidity and Valuation Uncertainty

Issue: Secondary exit pathways are ill-defined, dependent on opaque buyer networks and private-market negotiation timelines. Impact: Redemption cycles often exceed one fiscal year, creating mismatch between fund liquidity terms and underlying asset mobility. According to the UBS Global Family Office Report 2024, 61% of firms now prioritize liquid real asset vehicles as part of their risk mitigation strategy.

3. Administrative Overhead and Managerial Drag

Issue: Even with external operators, direct ownership introduces high fixed costs across legal, compliance, reporting, and facility oversight. Impact: Portfolio scalability is constrained. In a Preqin 2023 Survey, over half of mid-sized private wealth funds cited “manager coordination and asset servicing” as a top barrier to increasing real estate exposure across jurisdictions.

4. Geographic and Strategic Concentration Risk

Issue: Capital-intensive assets limit diversification, while cross-border deployment involves fragmented legal, tax, and operational regimes. Impact: Exposure is often clustered by region or operator. This undermines modern allocation goals that seek uncorrelated yield across non-overlapping markets. Brookfield’s 2024 Outlook underscores that diversified real estate portfolios outperform by reducing volatility and sector-specific tail risk.