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Data from PERE Research & Analytics has revealed that, from the beginning of Q1 2013 through the end of Q1 2014, a total of $134.52 billion was raised across all fund strategies that held a final close. Approximately 22.6% of that capital had been raised in Q1 2014, with funds closing at a total of $30.46 billion. This represents a significant increase from the same time last year where a total of $19.72 billion had been raised from funds closing in Q1 2013.
While the amount of capital raised by opportunistic funds had decreased from the prior quarter, these funds once again led the total capital raised compared to all other strategies for Q1 2014, with funds closing at total of $11.55 billion. One fund alone accounted for 60.6% of total capital closed for opportunity funds. That fund was the Blackstone Real Estate Partners Europe IV managed by The Blackstone Group, which closed on $7.01 billion this past March.
Debt funds had huge spike in capital closed on in Q1 2014, representing roughly a third of total capital raised for the quarter. Two funds managed by M&G Investment Management help explain the sudden spike, with M&G Real Estate Debt Fund II & III, closing at a total of $2.25 billion. While capital raised for fund-of-funds and secondary strategies remained relatively stable through the Q1 2013- Q1 2014 period, capital raised for value-added funds had decreased steadily since its peak in Q2 2013, with $3.74 billion in total capital raised for Q1 2014.