Real estate funds receiving record investment post-crash

Blackstone, Starwood and other bigwigs getting lion's share of money

New York /
Apr.April 22, 2015 12:36 PM

Real estate funds are receiving more investment from pension funds, endowments and institutional investors than at any point since the property bust, with a few large firms collecting most of the spoils.

Investors have poured money into real estate in search of better returns than they would see from bonds, according to David Hodes of consultancy Hodes Weill & Associates.

Most of the money is going to private-equity firms with large real estate funds and strong track records, according to the Wall Street Journal. Funds of more than $1 billion accounted for 64 percent of all the capital raised this year – up from 31 percent in 2012, according to data tracker Preqin.

Blackstone Group recently reported annualized returns of 18 percent for its real estate funds launched since 1992, not including the one that just closed. The firm raised $14.5 billion for its most recent fund. Barry Sternlicht’s Starwood Capital Group recently raised $5.6 billion, according to the newspaper.

Overall, 210 global closed-end funds raised a post-bust record $97.7 billion in 2014, more than double the $46.8 billion raised in 2010. Funds pulled in a record $137.5 billion in 2008. [WSJ]Rey Mashayekhi


Related Articles

arrow_forward_ios
From left: Stephen Schwarzman, chairman, Blackstone; Barry Sternlicht, chief executive officer, Starwood Capital Group (Getty Images, Brookfield Asset Management/Illustration by Steven Dilakian for The Real Deal)
Blackstone, Starwood to pay $1.5B for WoodSpring Suites properties
Blackstone, Starwood to pay $1.5B for WoodSpring Suites properties
Clockwise from left: 2250 59th Street in Brooklyn, 249-26 Northern Boulevard in Douglaston, Queens and 906 Wortman Avenue in Brooklyn (Google Maps)
Industrial buyers can’t stop, won’t stop
Industrial buyers can’t stop, won’t stop
New data platform finds hot housing markets while they’re still just warm
New data platform finds hot housing markets while they’re still just warm
New data platform finds hot housing markets while they’re still just warm
Blackstone's Stephen Schwarzman and 8 Spruce Street (Getty, Wikimedia)
Blackstone close to $930M purchase of Lower Manhattan apartment building
Blackstone close to $930M purchase of Lower Manhattan apartment building
Brookfield Asset Management CEO Bruce Flatt and Blackstone CEO Stephen Schwarzman with One Manhattan West (Getty, Brookfield)
Blackstone closing in on One Manhattan West stake
Blackstone closing in on One Manhattan West stake
Blackstone’s Stephen A. Schwarzman and Jonathan Gray (Getty)
These are the 10 largest real estate fundraisers of the last 5 years
These are the 10 largest real estate fundraisers of the last 5 years
Levered and loaded: KKR looks to flex its real estate muscle
Levered and loaded: KKR looks to flex its real estate muscle
Levered and loaded: KKR looks to flex its real estate muscle
Blackstone secures $1.1B refi on Sun Belt multifamily portfolio
Blackstone secures $1.1B refi on Sun Belt multifamily portfolio
Blackstone secures $1.1B refi on Sun Belt multifamily portfolio
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...