Investors who moved into private assets such as real estate and loans are now facing issues with illiquidity and getting their money back.

Nicola Wealth Management Ltd., a $17.2-billion money manager, is reducing monthly distributions on its two main real estate funds and is warning clients that it may delay redemptions because too many investors are trying to withdraw their money.

Nicola Wealth is the latest asset manager to flag potential redemptions as investors try to reduce their exposure to real estate, and the real estate industry struggles with relatively higher borrowing costs and other issues like falling apartment rents.

Nicola Wealth chief executive officer John Nicola said the number of investors asking to redeem their money accounts for less than 5 per cent of the funds’ t

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