Chart of the Week: Investors in PERE fund-of-funds by region

 Where GPs can look for fund-of-fund investors  

 COW319-411 

 

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At the end of 2013, PERE Research & Analytics had profiled over 2,300 LPs investing in private equity real estate funds. Using this comprehensive data, we were able to take a snapshot of the overall LP community in each region of the globe.

 

In 2013, only 3.7% of the total capital raised for private equity real estate funds went to fund-of-funds/co-investment strategies. As institutional investors gain further sophistication in the real estate asset class, and as the market continues to improve, fewer investors find themselves investing in these strategies, in particular, fund-of-funds.

 

For a GP on the road, the most receptive market for fund-of-funds is Europe, where 19% of profiled LPs in the region report having made investments in that particular strategy. Least receptive are Latin American LPs, where private equity real estate fund-of-funds are still few and far between.

 

A few fund-of-funds currently in market include Portfolio Advisors Real Estate Fund V managed by Portfolio Advisors, Madison International Real Estate Liquidity Fund V managed by Madison International Realty, and FLAG Real Estate Partners III managed by FLAG Capital Management.