North America has been the most popular private real estate market for quite some time now and the chart above reinforces the claim. In four out of the seven most recent quarters, at least a third of the capital raised throughout the entire world, has been dedicated to making North American investments. The highest market percentage of North American capital raised was 44.74% in Q3 2012. This period saw firms like Carmel Partners closing $820 million for Carmel Partners Investment Fund IV and Iron Point Real Estate bringing in $750 million for Iron Point Real Estate Partners II.
Q1 2014 saw a dip in the market with 19.64%. Because the previous quarter had 31.93% and the quarter before that saw 40.02%, we can easily assume that Q1 2014 was an outlier and not part of a trend. Furthermore, Q1 2014 still had noticeable North American fund closings, such as Walton Street Capital’s Walton Street Real Estate Fund VII, which has a size of $1.39 billion. So unless the next few quarters bring in market shares of less than 20%, we can safely assume that North America will still continue to dominate private real estate.