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Data from PERE Research & Analytics has revealed that a total of $27.7 billion has been raised between 71 sector-specific funds in the first three quarters of 2014. Most capital was raised in the second quarter when $10.3 billion or roughly 37 percent of the total was raised.
Multifamily/residential fundraising outpaces all other sector-specific funds for 2014. An aggregate of $8 billion has been raised for the sector – 55 percent ahead of 2013’s level when a total of $5.1 billion was raised. The largest multifamily/residential fund to close in YTD 2014 has been the Kildare European Partners I which closed on $2 billion in May.
Industrial funds remain popular with investors, raising $6 billion or 22 percent of the total. While fundraising has so far been strong in 2014 for industrial-specific funds, it may not reach the same levels it did in 2013 where it led all sector-specific funds at $11.9 billion. The largest industrial fund to close was the Prologis US Logistics Venture, which raised $1 billion.
Notable sector-specific funds in market include the office-focused Rose Rock Partners Fund, which is targeting $2 billion and the retail-focused ING REIM European Shopping Centre Fund, managed by CBRE Group, which is targeting €750 million.