If you invested in the USQ Core Real Estate Interval Fund and are now facing substantial losses due to the fund’s liquidation, you’re not alone—and you may have legal options to recover your money. Many investors were sold this product as a safe, income-generating portfolio diversifier, only to discover they were never told about the significant risks, strict liquidity restrictions, or the fund’s vulnerability to interest rate shocks and commercial real estate downturns.
When financial advisors recommend investments like the USQ Core Real Estate Interval Fund without conducting proper suitability analysis or fail to explain critical risks in plain language, they may be liable for your losses. You may be entitled to pursue recovery through FINRA arbitration or other legal channels, even if market conditions contributed to the fund’s poor performance.
This comprehensive guide walks you through everything you need to know: what’s happening with the USQ Core Real Estate Interval Fund liquidation, why so many investors suffered devastating losses, the most common types of advisor misconduct that can support a recovery claim, and the concrete steps you can take right now to pursue compensation for your losses.
What’s Happening With the USQ Core Real Estate Interval Fund
Table of Contents
The Fund Has Ceased Operations and Entered Liquidation
As of October 31, 2025, the USQ Core Real Estate Interval Fund officially ceased normal operations and entered liquidation:
- No new share purchases are being accepted
- The targeted 1% quarterly dividend has been permanently discontinued
- The Dividend Reinvestment Program (DRIP) is no longer available
- Quarterly share repurchase offers have been suspended
- All regular investor services have stopped
The Performance Collapse That Led to Liquidation
The USQ Core Real Estate Interval Fund experienced severe underperformance:
- 2023 return: -12.72%
- 2024 return: -4.22%
- 3-year annualized return (through Q3 2025): approximately -7.32%
- 2021 return: +19.51% (before the collapse)
This dramatic reversal left many investors with devastating losses, particularly those who invested during 2022-2024 based on the fund’s earlier success.
Why USQ Core Real Estate Interval Fund Investors Lost Money
Market Conditions That Hurt the Fund
Rising Interest Rates: When the Federal Reserve raised rates starting in 2022, commercial real estate valuations plummeted. Higher borrowing costs and reduced property cash flows hit the USQ Core Real Estate Interval Fund particularly hard.
Office Sector Collapse: The shift to remote work caused vacancy rates to soar and property values in the office sector to experience steep drops. The fund’s exposure to this troubled sector amplified losses significantly.
Illiquidity Trapped Investors: Unlike stocks or mutual funds, the USQ Core Real Estate Interval Fund’s underlying investments couldn’t be quickly liquidated, forcing the fund to ride out the downturn while losses mounted.
Redemption Pressure: The interval fund structure limited quarterly redemptions to just 5% of shares, trapping investors during the downturn and forcing asset sales at unfavorable prices.
Structural Problems With the Fund
- Limited liquidity: Only quarterly redemption windows capped at 5% of shares
- Redemption gates: Even limited redemptions could be suspended
- Valuation lag: Private real estate valuations lagged market reality by months
- Multiple fee layers: Compounding fees significantly reduced net returns
- Concentration risk: Heavy exposure to troubled commercial real estate sectors
Understanding the USQ Core Real Estate Interval Fund Liquidation Process
Timeline and What to Expect
The USQ Core Real Estate Interval Fund liquidation will take more than one year to complete due to the illiquid nature of real estate investments:
- First distributions: Anticipated to begin in Q1 2026
- Final distributions: Likely sometime in 2027 or beyond
- Ongoing reporting: Daily NAV calculations and periodic progress updates
- Tax documents: Schedule K-1s will be issued until liquidation is complete
How Assets Will Be Converted to Cash
- Redemption requests to underlying real estate funds (subject to their own restrictions)
- Secondary market sales of fund interests (potentially at discounts to NAV)
- Direct property sales with professional marketing
- Negotiated transactions to expedite liquidity, even at below-market prices
What Shareholders Will Receive
- Quarterly cash distributions starting Q1 2026 as assets are sold
- Tax treatment: Distributions may be classified as return of capital, capital gains, or dividends
- No action required: The fund will automatically calculate and send your pro-rata distributions
When Financial Advisor Misconduct May Support a Recovery Claim
Even When Markets Decline, Your Advisor May Be Liable
Market conditions don’t excuse unsuitable recommendations or misrepresentations. You may have a valid claim if your advisor:
1. Recommended an Unsuitable Investment
The USQ Core Real Estate Interval Fund may have been unsuitable if you:
- Had conservative or moderate risk tolerance
- Needed liquidity for expenses, healthcare, or emergencies
- Were retired or near retirement with limited ability to recover losses
- Had limited net worth or investment experience with alternatives
- Required steady income that couldn’t withstand dividend suspensions
- Had a short time horizon incompatible with illiquid real estate
2. Failed to Disclose Critical Risks
Your advisor should have clearly explained:
- Illiquidity: Only quarterly redemptions limited to 5% of shares
- Redemption gates: Possibility of suspended or limited repurchases
- Interest rate sensitivity: How rising rates would pressure valuations
- Sector risks: Exposure to troubled sectors like office real estate
- Dividend risk: Targeted distributions could be eliminated
- Capital loss potential: Risk of losing significant principal
- Valuation uncertainty: Private real estate pricing lags market reality
- Fee structures: Multiple layers reducing net returns
3. Misrepresented the Investment
Common misrepresentations about the USQ Core Real Estate Interval Fund:
- Describing it as “safe,” “conservative,” or “bond-like“
- Promising “steady, reliable income” without emphasizing suspension risk
- Claiming “liquidity similar to mutual funds” while downplaying restrictions
- Emphasizing 2021’s 19%+ return without adequate risk context
- Suggesting it was “principal-protected” or had limited downside
- Comparing it to liquid REITs without explaining structural differences
4. Over-Concentrated Your Portfolio
Concentration issues include:
- Allocating an excessive percentage to the USQ Core Real Estate Interval Fund
- Combining it with other illiquid alternatives, creating compounded liquidity risk
- Failing to maintain adequate liquid reserves for your needs
- Building correlated real estate investments that all declined together
5. Ignored Your Investment Objectives
Your advisor should have considered:
- Your age and retirement timeline
- Income needs and cash flow requirements
- Tax situation and K-1 reporting implications
- Loss capacity and ability to withstand drawdowns
- Liquidity needs for healthcare, family, or other obligations
- Investment experience with alternative investments
6. Failed to Monitor the Investment
Ongoing supervision failures include:
- Not re-evaluating suitability as your circumstances changed
- Failing to recommend adjustments when performance deteriorated in 2023-2024
- Ignoring warning signs: negative returns, rising rates, office sector stress
- Not discussing exit strategies or rebalancing options
7. Had Conflicts of Interest
Potential conflicts include:
- Receiving higher commissions for selling the USQ Core Real Estate Interval Fund
- Sales contests or incentives from the fund sponsor
- Proprietary product pressure from the firm
- Failing to disclose compensation structures fully
Common Red Flags in USQ Core Real Estate Interval Fund Sales
You may have grounds for a claim if:
- Your advisor emphasized income but downplayed dividend suspension risk
- You were told the fund was “conservative” or “low-risk“
- Liquidity restrictions were not clearly explained or were minimized
- Your advisor said you could “get your money out quarterly” without explaining the 5% limit
- You were near or in retirement but placed in an illiquid, volatile investment
- The fund represented a large portion of your portfolio
- You had limited investment experience but were sold complex products
- Your advisor didn’t discuss interest rate risk or office sector exposure
- You were shown 2021 performance without adequate risk context
- Your advisor discouraged questions or provided vague answers
- You received pressure to invest quickly
- Tax implications (K-1s) weren’t discussed
- Your advisor didn’t follow up as performance declined
How to Pursue Recovery for USQ Core Real Estate Interval Fund Losses
Step 1: Don’t Wait—Deadlines Apply
Time limits can permanently bar your claim:
- Statute of limitations varies by state (typically 1-6 years)
- FINRA eligibility rules generally require claims within six years of the event
- Evidence deteriorates over time—documents are lost, memories fade
- Early action protects your rights and strengthens your case
Step 2: Gather Your Documentation
Collect and organize:
- Account statements showing purchases, holdings, values, and distributions
- Trade confirmations for all USQ Core Real Estate Interval Fund transactions
- New account forms and risk tolerance questionnaires
- Communications with your advisor (emails, texts, meeting notes)
- Marketing materials about the fund
- Tax documents including K-1s
- Fund notices about performance and liquidation
Step 3: Document Your Investment Story
Write down:
- What your advisor said about safety, risk, liquidity, and income
- Your situation and objectives when you invested
- What you were told vs. what happened
- Attempts to exit or concerns you raised
- Your advisor’s response as performance declined
Step 4: Research Your Advisor’s Background
Check FINRA BrokerCheck (brokercheck.finra.org) for:
- Customer complaints or arbitrations
- Regulatory actions or sanctions
- Employment history
- Disclosure events
Step 5: Get a Professional Legal Evaluation
A qualified investment fraud attorney can:
- Assess suitability of the fund for your profile
- Identify misrepresentations or omissions
- Calculate potential damages based on your losses
- Explain the process and timeline for recovery
- Develop a strategy tailored to your situation
Understanding the Recovery Process
FINRA Arbitration is the most common forum:
- Who you sue: The brokerage firm or advisory firm (not the fund itself)
- Legal theories: Unsuitable recommendations, misrepresentation, breach of fiduciary duty, negligence, failure to supervise
- Timeline: Cases often settle; if not, arbitration typically takes 12-18 months from filing
- Costs: Many attorneys work on contingency (percentage of recovery, typically 33-40%)
Potential Damages:
- The difference between what you invested and what you received/will receive
- Adjusted for distributions and projected liquidation proceeds
- Potentially interest and costs
Frequently Asked Questions
Can I recover losses even though the market was down?
Yes. Poor market conditions don’t excuse unsuitable recommendations or misrepresentations. If the USQ Core Real Estate Interval Fund was inappropriate for your situation or your advisor misled you about risks, you may have a valid claim.
What if I signed risk disclosures?
Standard disclosures don’t protect advisors from liability. Even if you signed acknowledgments, you may still have a claim if the investment was unsuitable or your advisor made oral misrepresentations that contradicted written disclosures.
My advisor said the fund was conservative and safe. Is that a problem?
Yes. If your advisor characterized the USQ Core Real Estate Interval Fund as conservative or safe without adequately explaining the risks of principal loss, dividend suspension, and illiquidity, this constitutes misrepresentation.
I needed liquidity but was sold the fund. Can I recover?
Yes. Liquidity mismatch is a classic suitability violation. If you needed access to funds but weren’t clearly told about the 5% quarterly redemption limit and potential gates, your advisor recommended an unsuitable investment.
How much can I potentially recover?
Damages typically include:
- Your investment amount
- Minus distributions received
- Minus projected liquidation proceeds
- Plus potentially interest
An attorney can calculate your specific potential damages.
How long does a claim take?
Timeline varies:
- Case evaluation: 2-8 weeks
- Settlement negotiations: Ongoing (many cases settle)
- FINRA arbitration: 12-18 months from filing if not settled
- Total time: 6 months to 2 years typically
Do I sue the fund itself?
No. Claims target the brokerage firm or advisory firm that recommended the investment, not the fund or its managers.
Can I still pursue a claim if liquidation isn’t complete?
Yes. You don’t need to wait for final distributions. Claims can be based on current losses and projected liquidation proceeds.
What if my advisor has left the firm?
The firm typically remains liable for the advisor’s conduct while employed there. You can still pursue a claim against the firm.
How much does it cost to hire an attorney?
Most investment fraud attorneys work on contingency:
- No upfront fees or retainer
- Attorney receives a percentage of recovery (typically 33-40%)
- If you don’t recover anything, you typically don’t owe attorney’s fees
Contact Haselkorn & Thibaut for a Free Case Review
Experienced Legal Help for USQ Core Real Estate Interval Fund Losses
If you suffered losses in the USQ Core Real Estate Interval Fund and believe you received unsuitable recommendations or misleading information, Haselkorn & Thibaut can help you pursue recovery.
Why Choose Haselkorn & Thibaut?
- Specialized focus: Investment loss recovery, including interval funds and alternative investments
- Nationwide representation: We handle USQ Core Real Estate Interval Fund cases across all 50 states
- FINRA arbitration experience: Deep knowledge of securities arbitration
- Proven track record: Successful recovery for investors harmed by unsuitable recommendations
- Contingency fee options: No upfront costs—you pay only if we recover money for you
- Free case evaluation: No-obligation review of your losses and potential claim
What to Expect
- Free, confidential consultation to discuss your situation
- Thorough case evaluation reviewing your documentation
- Clear explanation of your legal options and the process
- No pressure to decide—you choose whether and when to proceed
- Aggressive representation if you move forward
Get Started Today
Don’t let deadlines pass or evidence disappear. If you lost money in the USQ Core Real Estate Interval Fund due to unsuitable recommendations or misleading advice, contact Haselkorn & Thibaut today.
📞 Call +1 888-885-7162
The sooner you act, the more options you’ll have to recover your USQ Core Real Estate Interval Fund losses.
