The proliferation of private opportunity funds in the US and Europe targeting distressed property amid the fallout from the credit crunch is increasing pressure on managers to accept 'special terms' from investors, according to New York-based fund of funds manager Clerestory Capital Partners. 'This issue needs to be more widely debated, as it could weaken real estate fund structures and endanger the investor/manager trust relationship that is the lynchpin of the market,' the company says in a position paper entitled 'Fair Trade: The Wisdom of Setting Equal Terms'.
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