USQ Core Real Estate Interval Fund Announces Plan to Liquidate

The board of trustees for the USQ Core Real Estate Fund, a continuously offered closed-end interval fund sponsored by Union Square Capital Partners LLC, has announced a decision to liquidate the fund, stating that the action is in the “best interests of the fund and its shareholders.”

Effective Oct. 31, 2025, the fund has halted all normal operations and will no longer accept any requests to purchase new shares. In line with the decision to liquidate, the board has ceased several regular investor services and investment practices. For example, the targeted 1% quarterly dividend practice and the automatic dividend reinvestment program, or DRIP, have been terminated. The fund will also no longer conduct quarterly share repurchase offers.

The fund’s primary goal was to provide investors with exposure to institutional private real estate, specifically by investing in a blend of core private equity real estate funds that make up the NCREIF Fund Index – Open-End Diversified Core Equity (NFI-ODCE) Index.

Its stated objective was to generate returns from both current income and long-term capital appreciation, aiming for moderate volatility and low correlation to the broader stock and bond markets.

According to the company, the fund’s assets will now begin a liquidation process with proceeds to be invested in cash equivalents until all assets are distributed to shareholders. Due to the nature of the fund’s holdings – which are primarily composed of illiquid securities not listed on an exchange – the full liquidation of the portfolio is expected to take over a year.

Under the adopted liquidation plan, the fund’s investment adviser will work to convert the portfolio to cash by submitting redemption requests to the underlying real estate funds and seeking out secondary market transactions. The fund anticipates beginning quarterly cash distributions to shareholders in the first quarter of 2026. These distributions may be classified as dividends, capital gains, or a return of capital.

The fund noted that shareholders do not need to take any action at this time. During the wind-down period, it will continue to maintain transparency and communication, including striking a daily net asset value per share, distributing all required shareholder reports, and providing periodic updates on the progress of the liquidation.

The decision to liquidate follows a sustained period of poor performance, somewhat reflective of the challenges facing the broader core real estate sector since 2023.

• Negative annual returns: The fund experienced significant losses in the years leading up to the announcement, with returns (NAV, Class I) of -12.72% in 2023 and -4.22% in 2024.
• Contrasting market cycles: While the fund delivered a strong return of 19.51% in 2021 – a major year for real estate – its performance sharply reversed as interest rates rose and valuations were challenged, particularly in the office sector.
• Trailing three-year loss: As of the third quarter of 2025, the fund’s three-year annualized return was approximately -7.32%.

Click here to visit the AltsWire directory page.