b'INVESTMENT ENVIRONMENT, CONT.Core private real estate faced challenges, recording negative returns each quarter. The NFI-ODCE Index reported returns of -2.0% in Q3 2023, -4.8% in Q4 2023, -2.4% in Q1 2024, and -0.5% in Q2 2024. Elevat-ed borrowing costs and expenses contributed to negative price appreciation, though declines showed signs of slowing by mid-2024.Publicly traded real estate was volatile but indicated potential stabilization. The FTSE NAREIT All REITs Index returned -8.0% in Q3 2023, surged 17.6% in Q4, and then posted -1.3% and -0.9% in Q1 and Q2 2024. Historically, public REIT performance has been a leading indicator for private real estate markets, suggesting that the negative trend might be nearing a bottom.During this period, private equity showed signs of recovery. Buyout activity increased by approximately 12% year-over-year in the first half of 2024, supported by more accommodating credit markets that spurred refinancings and repricings. Portfolio company valuations stabilized and exit values rose by 15%, though the number of exits remained flat. The median hold period for exits decreased to under six years, indicating potential recovery. Venture capital deal activity increased by the second half of 2024, mainly driven by two large AI investments in Q2 2024; however, excluding these deals, investment remained muted due to high interest rates and persistent inflation. Flat and down fundraising rounds hit a decade high, and exit activity stayed stagnant, far below the 2021 peak. Fundraising remained challenging across the venture ecosystem.SECTION 4 Investments 99'