Gating
InvestingDefinition
When a fund restricts the percentage of NAV that can be redeemed at any single time (typically 5-25% per quarter). Allows the fund to manage liquidity during stressed periods without forced asset sales.
Gates make headlines when triggered — they're a quasi-default that signals the fund can't honor its stated liquidity terms. Real-estate funds (Blackstone BREIT) gated in 2023 amid commercial real-estate stress.
Gates make headlines when triggered — they're a quasi-default that signals the fund can't honor its stated liquidity terms. Real-estate funds (Blackstone BREIT) gated in 2023 amid commercial real-estate stress.