With the end of Q2 2014 right around the corner, PERE Research & Analytics decided to take one last look at Q1 2014 and how it relates to the past year of private real estate fundraising. With the recent interim close of the value-add European Value Investors Fund, managed by AEW Global, PERE Research & Analytics decided to take a deeper look into value-add fundraising and how it compares to all other strategies.
Data from PERE Research & Analytics has revealed that a total of $24.55 billion had been raised for value-add funds between Q1 2013 and Q1 2014. These funds had raised a total of $3.74 billion in Q1 2014, with a majority of capital raised in North American focused funds. One fund alone accounts for roughly a third of total capital raised for the quarter. That fund is the AG Net Lease Realty III, managed by Angelo Gordon, which closed on a total of $1 billion this past March. Additionally, Q1 2014 represents a significant increase in total capital raised for value-add funds when compared to a year prior, where a total of $2.25 billion was raised in Q1 2013. However, despite its increase from a year prior, Q1 2014 falls behind all other quarters for the time period. Q2 2013 had raised the most capital for the time period, raising a total of $7.01 billion. However, fundraising for these funds declined since that point with Q1 2014 following that trend.
Other notable value-add funds for Q1 2014 include the Farallon Real Estate Partners fund, managed by Farallon Capital Management, which raised $375 million this past February, and the Star Lake Fund II, managed by JP Morgan Asset Management, which raised $300 million in January.