Preqin’s latest research shows that while closed-end private real estate fundraising has shown solid momentum in H1 2014 in terms of capital raised, the number of funds closed has dropped compared to the same period last year.
Seventyfour private real estate funds closed in H1 2014, a 30% decrease compared to the 106 that held a final close in H1 2013.
However, funds closed in H1 2014 secured an aggregate $41bn in capital commitments, an increase on the $32bn raised
by funds closed in H1 2013.
Go deeper with GlobalData
Access deeper industry intelligence
Experience unmatched clarity with a single platform that combines unique data, AI, and human expertise.
This is evidence that the capital raised by closed-end private real estate funds is increasingly concentrated among fewer managers, a trend that is likely to continue even as fundraising figures potentially increase by 10-20% as more data becomes available.
Private Real Estate Fundraising Key Facts:
- The average size of closed-end private real estate funds closed in H1 2014 was $573mn, a 28% increase on the average size of funds closed in 2013 ($445mn).
- 33 closed-end private real estate funds held a final close in Q2 2014 on an aggregate $16bn, a decrease compared to the previous quarter, when 41 funds held a final close on $25bn.
- Debt funds dominated the private real estate fundraising market in Q2 2014; seven debt-focused private real
estate funds closed in the quarter, raising an aggregate $7.5bn, significantly more than any other fund type.
Although 13 value added funds closed in the quarter, these vehicles only raised an aggregate $4.5bn. - The largest fund that held a final close in Q2 2014 was Kildare European Partners I, managed by Kildare
Partners; the fund closed on $2.0bn and is targeting distressed opportunities in West Europe. - Funds closed in H1 2014 took an average of 18.4 months to hold a final close, an increase compared to the
average of 17.1 months seen in funds closed in 2013. - The number of funds being marketed as of the start of Q3 2014 rose to 451 vehicles, compared to 447 at the start
of Q2 2014; however, the capital targeted has decreased slightly from $166bn in Q2 to $158bn in Q3. - The capital private real estate fund managers have available to invest (dry powder) is at an all-time high of
$212bn as of June 2014.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalData
