UBS has suspended withdrawals from its Euroinvest real estate fund for up to three years, citing insufficient liquidity. The decision, outlined in an investor notice seen by Reuters, aims to protect investors’ interests during a challenging market environment. UBS is a global financial services company providing wealth management, investment banking, and asset management services to individuals, institutions, and corporations worldwide. UBS manages investments on behalf of institutions, governments, corporations and private individuals.
The Germany-based fund, managed by UBS Real Estate GmbH, had assets under management of €406.8 million ($469.4 million AUD) at the end of February. UBS stated that the fund’s liquid assets were insufficient to meet redemption requests, and requests submitted after March 25 will not be executed. In addition, the Swiss bank will suspend the issuance of new shares, as additional sales are unlikely to improve fund liquidity materially.
UBS indicated that issuing new shares during the redemption halt could expose subscribers to heightened risks if redemptions are not resumed and the fund is eventually wound up. This move follows a trend of asset managers placing caps on funds, particularly private credit funds in the United States, amid increasing redemption requests.
Ares, Apollo Global, and BlackRock’s HPS Corporate Lending Fund have previously capped investor withdrawals at 5%. The suspension reflects broader concerns about liquidity in certain segments of the investment market.
