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Chart of the Week: China Fundraising 2008-H1 2014

2014 may be a downturn for China-focused fundraising

 COW 9-10 411x 

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Data from PERE Research & Analytics has revealed that a total of $22.5 billion had been raised for China-focused fundraising between 2008 and H1 2014. Since its lowest point in 2010, raising a total of $1.1 billion, fundraising for the country had increased consistently in the following years. 2013 saw the peak of fundraising for China, with an aggregate size of $6.7 billion. This represents a growth of 500 percent from 2010, 81 percent from 2011 and 42 percent from 2012. 2014, on the other hand, may face the first dip for the country in private real estate fundraising, raising $720 million for H1 2014. H1 2014 represents a drop from the prior half, where $5.6 billion had been raised.

In terms of strategy, opportunistic fundraising was the most popular, raising a total of $17.4 billion for the time period. A majority of that capital came from 2013, where $5.6 billion had been raised between eight funds, accounting for roughly 33 percent. In H1 2014, opportunity fundraising was the only strategy to raise capital, with the largest fund being the CBRE China Opportunity Fund II, managed by CBRE Group, which raised $470 million. The largest fund to close between the years for opportunity funds was the China Logistics Fund I, managed by Global Logistic Properties (GLP), which raised $1.53 billion in November 2013. Value-add funds came in second as most popular, raising a total of $3.3 billion, while core/core-plus fundraising came in third, raising $1.5 billion.

Notable funds in market for the country include the Rose Rock Partners Fund, managed by Rose Rock Capital Limited, which is targeting $2 billion and the debt-focused China Orient Summit Capital, managed by China Orient Summit Capital (COS), which is targeting $1 billion.