Chart of the Week: Sector-Specific Fundraising 2014

Multi-Family/Residential-focused fundraising led 2014 with Industrial close behind

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Data from PERE Research & Analytics reveals that a total of $116 billion was raised between 222 funds for private real estate in 2014. Of that total $32.7 billion was raised from sector specific funds, accounting for 28 percent of capital raised in 2014. This represents a 14 percent boost from the year before when sector-specific funds raised $28.1 billion.

Multi-family and residential fundraising led all other sectors for the year, with an aggregate of $9.2 billion being raised from 38 funds. Fundraising for the sector picked up 75 percent from the prior year when $5.2 billion was raised. North America was the most popular region for the sector, accounting for 75 percent in 2014. The largest fund to close for the sector was the debt-focused Lone Star Residential Mortgage Fund I, which raised $1.3 billion in December.

Industrial fundraising came in second for 2014, raising an aggregate of $9 billion between 21 funds. Unlike multi-family and residential funds, industrial fundraising couldn’t reach the same levels as its prior year. In 2013, industrial focused funds had raised $12.6 billion, which was 29 percent more than 2014’s figures. The largest fund to close for the sector was the LOGISTIS Fund, managed by AEW Global, which closed on an additional tranche of €820 million.