USQ Core Real Estate Fund (USQIX) Is Liquidating: What Holders Have Been Paid, and the $125.7 Million Still Inside
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Quick Answer
USQ Core Real Estate Fund (USQIX, SEC CIK 1691570) is being wound down. Its board adopted a plan of liquidation on October 29, 2025; from October 31 the fund stopped selling shares, stopped its quarterly repurchase offers and its 1% quarterly dividend, and began redeeming its stakes in 24 private core real estate funds. It has made two liquidating payments on record: $0.56 a share on December 30, 2025 and $4.886 on March 6, 2026. Class I NAV was $16.33 at March 31, 2026, against $29.86 four years earlier, and net assets fell from $145.4 million in March to $125.7 million at June 30, 2026 in a quarter with positive returns and no share activity, which is consistent with a further payment the SEC filings do not itemize. One underlying fund, the US Government Building Fund, is gated, and the manager tells holders the final liquidation "may not occur until 2027, or later". Holders do not need to do anything; they also cannot get out any faster.
Key Takeaways
- No exit but the payouts. The October 31, 2025 supplement ended purchases, the 80% real estate policy, the 1% quarterly dividend, the reinvestment plan and 'quarterly repurchase offers'. Money comes back only as the underlying funds pay the fund.
- Paid so far on record: $0.438 a share of regular distributions in June and September 2025, then liquidating payments of $0.56 (December 30, 2025) and $4.886 (March 6, 2026). Fiscal 2026 distributions totalled $5.89 a share, $5.75 of it return of capital.
- What is left: $145.4 million at March 31, 2026 (8,902,161 Class I shares, $16.33 each), and $125.7 million at June 30. Monthly returns in April-June were +0.37%, +0.24% and +0.57%, with no sales or redemptions, so about $21.4 million left the fund some other way (our arithmetic).
- The portfolio is 93.6% illiquid: stakes in 24 open-end private funds at March 31, from Clarion Lion ($12.9 million) and CBRE U.S. Core Partners ($10.4 million) down to $36,207 in U.S. Real Property Income Fund. By June two more (Principal Enhanced, Prologis USLF) were gone.
- The expense cap is gone. The adviser's agreement to hold operating expenses at 0.85% ended on October 31, 2025; the October supplement gives Class I total annual operating expense of 1.01%.
- About half the fund came from a merger. In 2024 the fund absorbed PREDEX, another Union Square interval fund, issuing $100.2 million of shares to its holders, so many USQIX holders started as PRDEX holders.
CSV · 92 rows
USQ Core Real Estate Fund: NAV, distributions, repurchases and the 24 underlying funds, 2021-2026
92 rows from the March 2026 annual report, the June 2026 N-PORT and the liquidation supplement: NAV, returns and net assets by year, every fiscal 2026 distribution, the last three repurchase offers, the liquidation events and each underlying fund's value in March and June 2026. One accession number per row.
What the fund was
USQ Core Real Estate Fund launched in 2017 as a way for individual investors to own a slice of the big open-end "core" real estate funds that pension plans use, the ones tracked by the NFI-ODCE index, with a target of paying out 1% of NAV every quarter and quarterly repurchase offers of at least 5% of shares. It is advised by Union Square Capital Partners, LLC of Kennett Square, Pennsylvania. In 2024 it absorbed PREDEX (ticker PRDEX), another interval fund with the same adviser: USQ issued 4,455,474 Class I shares worth $100.2 million to PREDEX holders, which is why net assets jumped from $147.8 million in March 2024 to $222.1 million a year later.
The strategy did what core real estate did. Class I NAV peaked at $29.86 at March 31, 2022, and the fund lost 3.5% and then 13.2% in the next two fiscal years as private real estate values were marked down.
| Fiscal year to March 31 | NAV per Class I share at year end | Distributions in the year | of which return of capital | Total return | Net assets at year end |
|---|---|---|---|---|---|
| 2022 | $29.86 | $1.09 | $0.98 | +25.29% | $189.5M |
| 2023 | $27.67 | $1.20 | $0.83 | -3.53% | $201.1M |
| 2024 | $23.07 | $1.02 | $0.87 | -13.19% | $147.8M |
| 2025 | $21.98 | $0.90 | $0.90 | -0.81% | $222.1M |
| 2026 | $16.33 | $5.89 | $5.75 | +1.18% | $145.4M |
Source: financial highlights, Form N-CSR for the year ended March 31, 2026 (accession 0001398344-26-010165). The shareholder letter gives Class I a 2026 return of +0.99%, measured on the published NAV rather than the GAAP NAV used in the table.
The liquidation, step by step
- October 29, 2025: the board approves the plan "based upon the recommendation of the Adviser"; share sales are suspended.
- October 31, 2025: a prospectus supplement tells holders the fund "will not pursue its stated investment objective", "will not conduct quarterly repurchase offers", ends the dividend and the reinvestment plan, and warns that "liquidation of the portfolio is expected to take over a year". Shareholders representing a majority of shares had approved dropping the interval-fund and 80%-real-estate policies. The same day the expense cap ended: the adviser had been holding expenses at 0.85% of net assets; it waived voluntarily until November 30.
- November 19, 2025: the fund terminates its RBC credit line and has no obligations left under it.
- December 12, 2025: Class L shares are converted into Class I.
- December 30, 2025: first liquidating payment, $0.56 a share.
- March 6, 2026: second payment, $4.886 a share. The manager expects "a majority of these distributions will be treated as a return of capital for tax purposes".
The last three repurchase offers before the plan paid out $33.7 million: $12.6 million in April 2025, $10.7 million in July and $10.4 million in October, each for up to 5% of shares. After that, the only way out is the pro-rata payments.
What is still inside
At March 31, 2026 the fund held $136.2 million in 24 private funds (93.6% of net assets) and $1.6 million in money market funds. The manager's letter says it had "placed full redemption requests for the entire portfolio", had "successfully exited eight investments" during the year, and was "receiving partial redemption payments from the remaining investments, except for the U.S. Government Building Fund which is currently gated".
| Underlying fund | March 31, 2026 | June 30, 2026 |
|---|---|---|
| Clarion Lion Properties Fund | $12.89M | $11.66M |
| CBRE U.S. Core Partners | $10.38M | $10.46M |
| GWL US Property Fund | $10.32M | $10.45M |
| BlackRock US Core Property Fund | $8.81M | $8.92M |
| Prime Property Fund (Morgan Stanley) | $8.27M | $7.70M |
| AEW Core Property (U.S.) | $7.67M | $6.53M |
| CIM UII Onshore | $7.36M | $7.40M |
| PRISA (PGIM) | $7.31M | $5.36M |
| Strategic Property Fund | $6.72M | $6.12M |
| BGO Diversified US Property Fund | $6.62M | $6.49M |
| Trumbull Property Fund (UBS) | $5.53M | $5.53M |
| Prologis Targeted U.S. Logistics Fund | $5.48M | exited |
| RREEF America II | $5.47M | $4.65M |
| US Government Building Fund (gated) | $5.28M | $5.28M |
| Principal Enhanced Property Fund | $1.47M | exited |
| Nine other funds | $26.6M | $23.5M |
| Total private funds | $136.2M (24 funds) | $120.1M (22 funds) |
Sources: schedule of investments, Form N-CSR (accession 0001398344-26-010165); Form N-PORT for June 30, 2026 (accession 0001193125-26-370361). "Nine other funds" and the June total are our sums of the lines in each filing; the CSV has every fund.
The pattern is the one a holder of these funds lives with: the big ODCE managers pay out redemption queues slowly and pro rata, so the fund receives cash in pieces, a few funds leave entirely each quarter, and the gated one stays at its carrying value. The US Government Building Fund position, bought for $4.8 million in November 2018 and marked at $5.28 million, has not moved since March.
The payment the filings don't itemize
Between March 31 and June 30, 2026, net assets fell from $145.4 million to $125.7 million. In the same quarter the fund reported monthly returns of +0.37%, +0.24% and +0.57% and no share sales, reinvestments or redemptions (N-PORT). Compounding those returns on the March figure gives about $147.1 million; the difference, about $21.4 million, or roughly $2.41 a share on 8.9 million shares, left the fund in some other way. A third liquidating distribution is the obvious candidate, but that is our inference: interval funds don't file 8-Ks, and the payment will only be itemized in the semi-annual report for September 30, due around December. The fund's website and statements to holders are the place to confirm it.
If you hold USQIX, or held PRDEX
- You don't have to act, and acting won't speed anything up. There are no repurchase offers and "no secondary market". Payments are pro rata.
- Track your basis. Most of what you receive is being characterized as return of capital; it reduces your cost basis rather than showing up as income, until basis runs out.
- Expect a slow tail. The manager says holders "should be prepared for the possibility that final liquidation may not occur until 2027, or later". The gated fund, and the smallest positions, will be the last.
- Plan for the cash. Each payment is money coming back into your account, and the decision on what to do with it is yours. Compare what other real estate interval funds still pay and how they handle exits in our interval fund comparison and NAV REIT vs interval fund; the Yieldstreet fund wind-down is another interval fund that ended in 2026, by merger rather than liquidation.
FAQ
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When USQ Core Real Estate Fund files: what changed, the one number that matters, and the accession number to check it yourself.
All figures are from the filings cited, read on EDGAR on September 27, 2026. Sums of holdings, the unexplained decline in net assets and the per-share estimate are our arithmetic. This is analysis of public documents, not investment, legal or tax advice.
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