Chart of the Week: Funds in Market

Value-added funds continue to make the majority

 COW 1-21 411x 

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Data from PERE Research & Analytics has revealed that, at the end of 2014, a total of $264.3 billion is targeted from 760 funds. This represents a 21 percent growth from a year ago when 584 funds were targeting an aggregate of $219.1 billion. Much like previous years, value-added funds make up the majority of the targeted capital with an aggregate size of $90.2 billion between 289 funds. North America continues to be popular for the strategy, with 193 funds raising $48.8 billion. The largest value-add fund in market is the TPG Real Estate II, which was launched in the first half of 2014 with a target of $2 billion. 

While leading 2014 in total capital raised, opportunity is the second most popular strategy for funds in market, representing 33 percent of the aggregate target size and 27 percent of total number of funds in market. Despite coming in second, the strategy has the highest average target size per fund, with fund size averaging roughly $420 million. The largest fund for the strategy as well as largest fund currently in market is the Blackstone Real Estate Partners VIII, which is targeting $13 billion. 

Core/Core plus funds once again round out the top three strategies, targeting an aggregate $39.4 billion across 117 funds. Europe is the most popular region for the strategy, accounting for 49 percent of total core/core plus funds in market and 59 percent of the aggregate target. Despite the regions’ popularity with the strategy, the largest core fund actually is targeting Asia-Pacific investments. That fund is the Rose Rock Partners Fund which is targeting $2 billion.