The Real Deal New York

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

Preqin blames “lack of mega funds”
By Konrad Putzier | August 02, 2018 04:30PM

(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.