Private real estate fundraising drops to lowest level since 2013: report

Preqin blames “lack of mega funds”

National /
Aug.August 02, 2018 04:30 PM

(Credit: iStock)

New private real estate funds closed with $22 billion in investor commitments in the second quarter, according to a new report by research firm Preqin. That’s the lowest fundraising volume since the first quarter of 2013.

In last year’s second quarter, $37 billion worth of new private real estate funds closed around the globe.

Preqin blames a “lack of mega funds” for the decline. In the first quarter of 2018, when fundraising also totaled $37 billion, two funds accounted for almost half that sum. In the second quarter, the two biggest new funds, Landmark Real Estate Fund VIII and Kayne Anderson Real Estate Partners V, raised a mere $5.2 billion combined.

GreenOak Real Estate raised the quarter’s third-largest fund with $1.55 billion in commitments.

Of the $22 billion raised globally last quarter, $14 billion went to funds focused on North America.


Related Articles

arrow_forward_ios
With a cooling trade war, stocks perform well, including real estate. (Credit: iStock)
Real estate stocks push up this week as U.S.-China trade tensions ease
Real estate stocks push up this week as U.S.-China trade tensions ease
416 West 25th Street and Maverick Real Estate Partners principal David Aviram (Credit: Google Maps and LinkedIn)
Chelsea landlord claims “predatory” lender is charging a crippling interest rate as punishment after losing foreclosure case
Chelsea landlord claims “predatory” lender is charging a crippling interest rate as punishment after losing foreclosure case
Slate Property Group's Martin Nussbaum and a rendering of the project
Hakimian, Certes land $59M loan for East Harlem multifamily project
Hakimian, Certes land $59M loan for East Harlem multifamily project
From left: 909 Third Avenue, 79 Fifth Avenue, 240 West 37th Street and 27 East 62nd Street (VNO, Cercone Exterior Restoration, Google Maps)
These were the largest Manhattan real estate loans in April
These were the largest Manhattan real estate loans in April
C-PACE gives landlords and developers cheap financing in exchange for making energy efficient improvements. (Getty)
Landlords can now retroactively tap financing tool for energy improvements
Landlords can now retroactively tap financing tool for energy improvements
11 East 26th Street with Henry and Justin Elghanayan (Google Maps, Getty)
Rockrose investment values Nomad office building at $235M
Rockrose investment values Nomad office building at $235M
Jamie Dimon, Steve Roth, Donald Trump and 555 California St. (Trump, Getty)
Vornado lines up $1.2B refi of SF tower co-owned with Trump
Vornado lines up $1.2B refi of SF tower co-owned with Trump
Ron Perelman and 35-39 East 62nd Street (Getty, Google Maps)
Big discounts on sale of Perelman properties and loans
Big discounts on sale of Perelman properties and loans
arrow_forward_ios

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

Loading...