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Chart of the Week: Private Real Estate Fundraising 2008-2014

2014 ended with strong fundraising levels through less funds

 COW 1-7 411xc 

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Data from PERE Research & Analytics has revealed that a total of $698.6 billion had been raised through 1719 funds between 2008 and the end of 2014. While fundraising figures couldn’t match similar levels in the prior year, 2014 raised an aggregate size of $116 billion from 222 funds, or a dip of just below 2 percent from 2013. Since 2010, when fundraising was at its lowest during the time period, 2014 had shown a growth of 101 percent. 

In terms of strategy, opportunistic fundraising led all other types for 2014, raising a total of $31.3 billion. For the majority of the year, opportunistic fundraising had lagged, coming in at third at the end of Q3 2014 at $18.5 billion. However, fundraising for the strategy had picked up significantly during Q4, raising a total of $12.9 billion. The largest fund to close for the strategy was the Blackstone Real Estate Partners Europe IV which raised $8.7 billion between two tranches. 

Geographically, while nearly every other region faced a decrease in capital, Europe faced significant growth in private real estate fundraising for 2014, raising a total of $41.3 billion. The region had shown a growth of 83 percent from the previous year, where $22.6 billion had been raised. Opportunity was the most popular strategy for the region, raising $11.5 billion with debt and value-add funds coming in second ($10 billion) and third ($8.7 billion) respectively. 

Other notable funds that closed in 2014 was the debt-focused PIMCO BRAVO Fund II which raised $5.5 billion; Kildare European Partners I, which closed on $2 billion in May; and Partners Group Real Estate Secondary 2013 which raised roughly $2 billion.