Based on the INREV vehicles database, the non-listed real estate market in Europe has grown to more than 450 vehicles with a Gross Asset Value (GAV) of approx. Ä260Bn. with different investment strategies and styles in 2009. In light of the recent financial turmoil and more than 40 different fees in place, transparency for investors is limited. Although the alignment-of-interest with fee structures is crucial to the functioning of the property fund model, few studies have targeted the link between fund terms & conditions and investment performance. In this way, the aim of this paper is to critically analyze the effect of fee structures on the performance of non-listed real estate vehicles. In this way, the paper combines performance data from various real estate vehicles on the one hand with fee-related terms and conditions on the other hand. Also, the empirical analysis includes various fund-specific factors like fund size, property type, regional allocation and investment style as control variables in the regression analysis. The INREV-based (Investors in Non-listed Real Estate Vehicles) sample focuses on the European property funds market and excludes fund-of-funds.