Exited a non-traded REIT inside the repurchase window and netted more than the stated NAV.
The fund had a quarterly repurchase program with a five percent early redemption fee inside the first three years. At month thirty-one, the sponsor updated the NAV upward by roughly four percent to reflect a portfolio appraisal. The repurchase price moved with it. So the net after the fee was still above the original entry price, and the updated NAV had not yet been telegraphed widely in the quarterly report. The timing was not inside information, it was just reading the appraisal cycle written plainly in the PPM and submitting the repurchase request the week the new NAV posted. What made it work was having no other exit tied to that capital: the repurchase queue was short because most investors assume the gate is the whole story, and they wait. The gate that quarter was forty percent subscribed, meaning the fund would only redeem up to forty percent of requests received. Two repurchase requests total came in. Both cleared in full. If the queue had been full, pro-rata processing would have stretched the exit across two quarters and the redeployed capital timing would have been wrong for what came next. The assumption doing the most work here is that quarterly repurchase gates are a ceiling you have to fight, when in a lightly requested quarter they are barely a speed bump. What does your current fund's PPM say about how the gate resets if a quarter comes in undersubscribed?
