The equity invested by closed-end private real estate funds in new opportunities in the US reached US$67 billion in 2012, almost the same amount as the peak in 2007, when US$68 billion was invested, according to a new Preqin report.
Recent improvement in the US-focused real estate fundraising market means that many fund managers have a significant amount of capital to deploy in the country in 2013 and the future. As of August 2013, US-focused private real estate fund managers have an aggregate US$98 billion in equity available for investments in new opportunities, up from US$79 billion in December 2012.
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Other Key Findings:
- US-focused private real estate fundraising has picked up in recent years; an aggregate US$40 billion in equity was raised by 111 funds in 2012, up from US$37 billion raised by 107 funds in 2011, and significantly higher than the aggregate US$25 billion raised by the 84 funds that reached a final close in 2010.
- In 2013 so far, 64 US-focused private real estate funds have held a final close, raising an aggregate US$33 billion in equity. During the same period last year, 66 funds reached a final close, but they raised just US$17 billion, a little more than half the amount raised so far this year.
- The number of US-focused funds in market and the aggregate capital sought has remained relatively stable since September 2011, and as of September 2013 there are 255 US-focused real estate funds on the road targeting an aggregate US$79 billion in equity.
- The capital distributed by US-focused closed-end private real estate funds back to their investors each year has also risen dramatically since the financial crisis to US$36 billion in 2012, approaching the US$38 billion distributed in 2007 after reaching a low of US$13 billion in 2009.
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By GlobalData
