Fri, Jul 19, 2019
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Private real estate fundraising nosedives in 2Q 2019, hitting a five-year low

Thursday, July 11, 2019

Laxman Pai, Opalesque Asia:

Private real estate fundraising decreased significantly in Q2 2019 from the previous quarter, hitting a five-year low, Preqin said in its quarterly update on real estate.

Forty-seven funds reached a final close, raising just $29bn, which marks a sharp decrease from the $46bn secured in the previous quarter. The quarter is also some way off the equivalent period of 2018, which saw 115 funds raise a combined $38bn.

As is typical, value-added and opportunistic funds accounted for the greatest proportion of fund closures, with 16 and 15 vehicles closed respectively.

Debt funds secured notable fundraising, though, as nine funds raised a total of $8.9bn. Core and core-plus fundraising remained peripheral, collectively securing just $0.9bn through the quarter. In contrast to Q1, no distressed real estate funds closed.

The time spent in market by funds closed in the first half of the year points to a bifurcation of the fundraising market. Continuing the long-term trend, a greater proportion of funds closed in H1 (40%) spent less than 12 months in market compared to 2018 (38%).

At the same time, the proportion in market for more than 18 months rose from 36% to 38%, showing that a significant proportion of fund managers still face a long and challenging fundraising process.

Large number of new private real estate funds enter market

Despite lacklustre top-level fundraising figures, a large number of new private re......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Crypto: U.S. market regulator issues guidance on custody of digital asset securities, Bitcoin's stunning growth makes it investable, admits legendary hedge fund manager, Institutional investments rise with bitcoin volatility. Wait, what?, Can blockchain build a better bank? Experts weigh in - The Ledger, Cryptocurrency startups get partial green light from Washington, Facebook's Libra cryptocurrency faces more backlash, China's central bank developing own digital currency in response to Libra[more]

    U.S. market regulator issues guidance on custody of digital asset securities From Reuters: The U.S. Securities and Exchange Commission (SEC) on Monday issued a notice on broker-dealer custody of digital asset securities, amid industry requests for clarity on whether they can hold such a

  2. PE/VC: Burger King in China and Turkey attracts private equity buyers, China's VC market is said to enter a downturn, VC industry makes slow progress on diversity[more]

    Burger King in China and Turkey attracts private equity buyers From Finance Asia: The world's largest franchisee of the fast-food chain outside the US is on the block. One wealthy Turkish family holds the key to a successful sale. Burger King is back up for sale in China and Turkey

  3. Hedge funds post best first half in decade, Viking Global funds surge, Blue Harbour's double windfall[more]

    Hedge funds post best first half in decade From Bloomberg: Hedge funds reported the best first half since 2009 as equity managers capitalized on the surge in stocks. Funds rose 5.7% from January through June, according to Hedge Fund Research Inc.'s asset-weighted index of managers. Equi

  4. Private real estate fundraising nosedives in 2Q 2019, hitting a five-year low[more]

    Laxman Pai, Opalesque Asia: Private real estate fundraising decreased significantly in Q2 2019 from the previous quarter, hitting a five-year low, Preqin said in its quarterly update on real estate. Forty-seven funds reached a final close, raising just $29bn, which marks a sharp decrease fro

  5. Regulatory: SEC reforms open door to BDC market shakeup, Regulatory rollback: First set of Volcker Rule reforms finalized[more]

    SEC reforms open door to BDC market shakeup From Reuters: The US Securities and Exchange Commission's (SEC) fund of funds proposals potentially open the door to a shakeup in the Business Development Company (BDC) market. Under the existing guidelines, regulated funds are prohibited from