Data from PERE Research & Analytics has revealed that a total of $116 billion had been raised between 222 funds for private real estate in 2014. Opportunistic funds had led the fundraising trail for the year, raising a total of $31.3 billion from 46 funds, or 27 percent of total capital raised. While closing 2014 on a strong note, the strategy lagged behind debt and value-added for the majority of the year. At the end of Q3 2014, opportunity funds came in at third, raising a total of $18.5 billion. However, fundraising for the strategy picked up significantly for in the last quarter of the year, raising $12.9 billion. Despite strong fundraising levels in 2014, opportunistic funds couldn’t quite match fundraising levels from the prior year. In 2013, the strategy raised an aggregate of $45.1 billion, 31 percent more than opportunistic fundraising capital in 2014.
Geographically, Europe raised the most capital for opportunistic funds, with an aggregate size of $11.5 billion. This is a substantial boost from the previous year, when European opportunistic funds raised $5.4 billion, an increase of 113 percent. 2014 marks a change in regional preference for opportunistic funds because North America had led fundraising for the strategy since 2009. The largest opportunistic fund to close for the year was the Blackstone Real Estate Partners Europe IV, which raised $8.7 billion between two tranches.
Notable opportunistic funds to close in the year include the Blackstone Real Estate Partners Asia which raised $5 billion at the end of the year; the GI Partners Fund IV which raised $2 billion in April and the Walton Street Real Estate Fund VII which raised $1.4 billion in February.