(Private Equity Real Estate Fundraising at Lowest Level Since 2003)
Twenty closed-end private real estate funds held final closes in Q1 2013, raising an aggregate $5.2bn, a 79% decrease on the
$25bn raised in Q4 2012. Preqin anticipates the latest quarterly figures improving slightly (10-20%) as more information becomes
Other Key Findings:
- • Fundraising by Region: Funds with a primary focus on North America raised the most capital; 12 such funds received
aggregate commitments of $3.7bn. Three Europe-focused funds raised $756mn, while five Asia-focused funds raised $776mn.
- • Notable Funds Closing in Q1 2013: Rockpoint Group raised $1.95bn for Rockpoint Real Estate Fund IV, the largest fund to
close in the quarter, while Prime Finance Partners raised $621mn for Prime Finance Partners III.
- • Interim Closes: In addition to funds holding final closes, 44 held interim closes in the quarter, raising $5.9bn towards their
fundraising targets. Forty-seven percent of funds in market have held at least one interim close, compared to 40% of funds in
market in April 2012 and 37% in April 2011.
- • Time Taken to Close Funds: Funds that closed in Q1 2013 spent an average of 18.7 months in market, a small increase from
the average of 18.3 months taken to fundraise by funds closed in 2012 and a significant increase on the average of 9.2 months
that funds closed in 2007 spent in market.
- • Funds in Market: There are currently 436 private real estate funds in market targeting aggregate commitments of $157bn.
While the number of funds on the road fell during Q1 2013, the fundraising market remains extremely competitive.
- • Investors: 53% of private real estate investors plan to make commitments to the asset class in 2013, compared to 36% of
investors which intended to make real estate investments in 2012 when interviewed in December 2011.
Source : Preqin