The Future of Real Estate and Private Credit Investment: Trends to Watch in 2025

As real estate and private credit investment evolves, so too do the expectations and demands placed on fund operations and administration. For fund managers, particularly in markets such as Australia and New Zealand, the ability to adapt to shifting investor priorities and leverage operational efficiencies is becoming a decisive factor in maintaining a competitive edge. This article explores operational trends poised to reshape fund management in 2025, with insights drawn from Caruso’s own data from our extensive array of customers within real estate, private equity, private credit and agriculture.

1. Growing Investor Demand for Self-Service Reporting and Investor Portals

Today’s investors expect greater transparency and accessibility when managing their investments. Self-service portals have shifted from a "nice-to-have" to a "must-have" feature, allowing investors to view fund performance, distribution details, and compliance documentation at their convenience.

Digital reporting has become crucial, especially given the "Great Wealth Transfer" which will see US$84 trillion in assets shifting from older generations to their heirs (according to Cerulli Associates, 2021). This transfer of wealth to a more tech-savvy generation is driving increased expectations for digital-first experiences, including digital reporting.

Still, at this moment, fund managers who have switched from manual, on-demand email reports to Caruso’s investor experience have been bewildered by the adoption rate of investors that now actively use self-service reporting features on a weekly basis, even by older clientele.

Investor portals now feature integrated Know Your Customer (KYC) and Anti-Money Laundering/Counter-Terrorism Financing (AML/CTF) onboarding capabilities, providing a seamless and efficient transition from prospect to investor. These integrated systems automate the collection, verification, and management of investor data, ensuring compliance with regulatory requirements - making siloed compliance systems a thing of the past.

2. The Evolution of Communication: Email and SMS Take Centre Stage

Fund managers are moving away from traditional communication methods such as phone calls and printed mail. Email remains the dominant channel for investor updates, but SMS is emerging as a complementary tool for time-sensitive notifications, such as subscription confirmations or AML/KYC reminders.

The financial sector values SMS for its urgency and high open rate. SMS boasts an average open rate of 98%, with 91% of messages read within 5 minutes, making it an effective channel for time-sensitive communications.

This shift reflects investors’ increasing preference for concise, on-the-go updates that align with their busy schedules. By integrating SMS alongside email, fund managers can create a robust, multi-channel communication strategy that ensures critical information is delivered promptly and effectively.

3. Mobile Access and Digital Subscriptions

Investors increasingly expect to review opportunities, subscribe to funds, and manage their investments seamlessly via mobile devices. Mobile optimisation and digital subscription processes are no longer optional - they are essential for attracting tech-savvy investors and meeting their expectations for a streamlined experience.

Data insights gathered from Caruso’s website reveals that ~20% of users in 2024 were via mobile devices, a trend set to grow in 2025. Fund managers should prioritise intuitive mobile interfaces and digital workflows to cater to this demand. 

4. Flexible Investment Structures

Investors are seeking greater flexibility in their portfolios, including the ability to allocate funds across pooled investments, syndications, and different layers of the capital stack (equity and debt). Providing a unified and cohesive experience for these types of investments can differentiate fund managers from competitors.

5. Enhanced AML/KYC Compliance and Reporting

Managing complex AML/KYC flows has become a significant challenge for fund managers, especially with increasing regulatory scrutiny. Investors expect compliance processes to be efficient, accurate, and minimally intrusive, while fund managers require complete visibility for reporting and audits.

Ensuring a robust compliance framework not only streamlines operations but also builds investor trust especially as compliance becomes increasingly more important and stringent.

6. Unlocking Liquidity in Private Markets

Liquidity remains a key concern for investors in private markets. The ability to provide partial liquidity through secondary transactions or structured exit options is becoming a critical differentiator for fund managers. This is particularly relevant in commercial real estate, where average holding periods typically range from five to ten years. By providing liquidity windows every three to six months, fund managers can enhance the appeal of their funds, offering investors greater flexibility and confidence in their investment commitments.

One of our customers in New Zealand opens windows of liquidity on a quarterly basis and has seen over several million dollars of volume exchange since implementing Caruso’s secondary market feature. Fund managers offering creative liquidity solutions will stand out in an increasingly competitive market.

What This Means for Fund Managers

The operational trends outlined above highlight the increasing importance of adopting technology and optimising fund management processes to meet investor expectations. Fund managers should focus on:

• Implementing investor portals that prioritise self-service and transparency.
• Integrating email and SMS for multichannel communication.
• Optimising mobile platforms for seamless investment reviews and digital subscriptions.
• Offering flexible investment structures that include auto-reinvestment and multi-product capabilities.
• Ensuring compliance processes are automated, accurate, and investor-friendly.
• Developing strategies to provide liquidity options in traditionally illiquid private markets.

By addressing these areas, fund managers can position themselves as leaders in the market by gaining top tier operational efficiency and investor satisfaction.

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