Our analysis of more than 2,400 real asset funds over two decades shows a clear but nuanced pattern: funds investing in their ‘Home’ region have outperformed ‘Away’ peers by ~220bps on median IRR, while experiencing roughly half the loss rate.
This is not a criticism of global investing – Away funds can and do perform well. Rather, the data points to a deeper structural challenge: distance can introduce organisational friction, what we call Transmission Drag, subtly affecting timing, conviction, and decision-making.
The real differentiator is not simply ‘Home vs. Away’, but the quality of a firm’s organisational design — how effectively it blends global insight with local reflex. This raises important strategic questions:
• For global platforms. How can local speed and conviction be preserved while still benefiting from scale, shared insight, and governance discipline?
• For LPs. How should due diligence evolve to assess a GP’s global operating model, not just their local team and track record?
• For both GPs and LPs. What governance structures, incentive systems, and decision rights best minimise drag?
The paper does not claim to offer a complete framework; its purpose is to frame the issue and open a more informed discussion about drivers of performance. We would be pleased to explore how these themes might apply to your business.