Daily market intelligence on mortgages, equity raising, investment sales, and CMBS.

Tuesday, 26 April 2016

$21Bln Raised for Real Estate Funds During 1Q

Written by 
Rate this item
(0 votes)

Commercial Real Estate Direct Staff Report

Investment managers raised $21 billion of equity commitments for 44 real estate funds that closed during the first quarter, according to Preqin.

That's roughly equal to the amount raised during the fourth quarter, but down from the $29 billion raised during the first quarter a year ago. It's also well off the record $41 billion that was raised during last year's third quarter. Rockpoint Real Estate Fund V, which raised $3.3 billion, was the latest quarter's largest fund. Meanwhile, the 10 largest vehicles to close during the quarter raised $14 billion, or two-thirds of the total raised. So the remaining 34 funds that closed were relatively small at $220 million.

Preqin, a London research firm focused on the investment management business, noted that dry powder, or capital ready to be deployed, now totals $230 billion. The bulk of that is earmarked for investments in North America. Funds with an opportunistic strategy have $97 billion of capital available.

Preqin added that real estate remains a favored asset class in part because of its positive returns. Closed-end real estate funds have posted increases in their net asset values for 21 straight quarters. And since 2007, more capital has been paid out or is available in the funds themselves than has been invested in them.

It found that 492 funds are in the market, marking an all-time high. They're looking to raise a total of $175 billion. Just more than half, in both number and capital, are North American-centric, while a fifth are European-centric. The largest of the batch is Blackstone Real Estate Partners Europe V, which is aiming to raise just more than $7 billion. Brookfield Strategic Real Estate Partners II is just behind it with a $7 billion target. It has a global focus.

The funds that closed during the quarter took roughly 18 months to complete their capital-raising, which is unchanged from last year.

Comments? E-mail Orest Mandzy, or call him at (267) 247-0112, Ext. 211.


“The Weekly”

“The Weekly” is Commercial Real Estate Direct’s PDF newsletter, sent to subscribers every Friday morning. With over 100 news stories published on Commercial Real Estate Direct each week, “The Weekly” features the top stories in commercial real estate that industry participants need to know first. “The Weekly” also contains:

  • Breaking mortgage, CMBS, and REIT news

  • Quarterly league tables with rankings of B-piece buyers, book runners, and lenders

  • Industry moves and changes in “The Insider“

Additional Info

  • Syndicate to Realpoint: No
  • Subject: Institutional Investment (INS), Opportunity Funds (OPPY)
  • Private: No
Read 1421 times

Data Digest







Top Bookrunners Domestic, Private-Label CMBS - 2017
Investment Bank #Deals Vol$mln MktShr%
Goldman Sachs 17.59 11,819.34 13.68
JPMorgan Securities 14.52 10,968.11 12.70
Citigroup 12.04 10,012.71 11.59
Wells Fargo Securities 14.02 9,936.06 11.50
Deutsche Bank 12.55 9,879.74 11.44




cppichart FP



CMBS 2.0 Spreads


Top CMBS Loan Contributors - 2017
Lender #Loans Vol$mln MktShr%
Goldman Sachs 146.89 11,719.34 13.63
JPMorgan Chase Bank 117.68 10,114.14 11.76
Deutsche Bank 198.48 9,689.97 11.27
Morgan Stanley 166.18 8,539.78 9.93
Citigroup 199.05 8,088.24 9.41





  • Challenging Retail Environment Weights on REITs
    Mixed economic news is weighing on retail markets, pushing REIT performance down in 2015. This week, the National Retail Federation announced that back-to-school spending is expected to be down 9.3% in 2015. This news came on the heels of a report from the Commerce Department stating that retail sales declined 0.3%...
  • US REITs Feeling Effects from Turmoil in Greece and China
    International economic forces have taken center stage this week, affecting both US stock markets and REITs. The crash in the Chinese stock market and ongoing concerns about the future of Greece in the eurozone drove markets down during the first half of the week. REITs fared better than the overall market...

  • What Does Increased Construction Mean for Apartment REITs?
    REITs so far this year have raised $17.1 billion of capital through the sale of unsecured notes, bringing the total raised over the past two and a half years to just more than $75 billion. That’s more than they raised during the previous five years. The massive volume shouldn’t be a surprise as it comes while the yield from 10-year Treasury bonds, the benchmark...
shouldn’t be a surprise as it comes while the yield from 10-year Treasury bonds, the benchmark against which most REIT’s price their bonds