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From Komfie Manalo, Opalesque Asia – Fundraising for private real estate funds declined in the second quarter compared to the first three months of 2012, according to the latest data from information provider Preqin.
In its latest report, Preqin said that fund raising activities in the second quarter has been slower than the level seen each quarter last year and the first quarter of 2012.
It added that at least 27 closed-end private real estate funds raised an aggregate $7.5bn in its final close in Q1 2012, and a further three real estate funds of funds closed in the quarter, having raised an aggregate $1.3bn. But despite the figures showing an improvement between 10% and 20%, they were still below previous fundraising activities.
Andrew Moylan, Manager, Real Estate Data at Preqin commented, "Q2 2012 saw capital raised for private equity real estate funds fall for a second successive quarter. The $7.5bn total was a decline on the $10.8bn raised in Q1 2012 and the $15.9bn raised in the final quarter of 2011. It remains extremely tough for fund managers to hold final closes as a result of the level of competition and the significant number of institutional investors which are not actively investing in new private real estate funds. With 453 funds now on the road, it is harder than ever for managers seeking capital for real estate funds to stand out from the crowd. Some managers have had consi...................... To view our full article Click here
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