Real estate private equity fund managers around the world continue to face major challenges stemming largely from ongoing illiquidity within the capital markets. This has left few able to secure bank financing and stifled deal flow, according to Global Market Outlook: Trends in real estate private equity, a new report by Ernst & Young.
The report, based on a survey of 300 global real estate funds, found that even in heavily favored emerging markets, like Brazil and India, deployment of capital by private equity funds has slowed down. This is largely because of the Eurozone crisis and the uncertainty it has brought to markets around the world. The one exception is Russia, where domestic banks continue to fund transactions and new development despite their already high exposure to real estate, providing local investors with the means to execute transactions. (Press Release)