With the recent close of the $400 million US-focused Harbert United States Real Estate Fund V, managed by Harbert Management Corporation, as well as the $800 million US-focused value-add Greystar Equity Partners VIII, managed by Greystar Real Estate Partners, PERE Research & Analytics decided to take a deeper look into US-Focused funds between Q1 2013 and Q1 2014.
Based on data gathered from PERE Research & Analytics, a total of $44.28 billion had been raised for US-specific private real estate funds between Q1 2013 and Q1 2014. Q2 2014 represented the most capital raised during the period, raising approximately 35% of total capital raised. Opportunity funds account for a significant portion of total capital for Q2 2013, making up about 46% of total capital for Q2 2014. However, Q3 2013 dips in total capital raised due in large part to the lack of opportunistic funds closing for the period, unlike the previous period. However, fundraising does pick up again in Q4 2014 where a total of $9.51 billion was raised, with debt, opportunity and value-add funds making up the majority of the total fairly evenly. Despite the minor increase in Q4 2013 from Q3 2013, Q1 2014, unfortunately, doesn’t follow the same trend. In fact, Q1 2014 represents the lowest amount of total capital raised, making up roughly 10% of total capital for the period. One of the larger US-focused funds that closed in Q1 2014 was the Cabot Industrial Value Fund IV, managed by Cabot Properties. The fund, which raised $712 million, is value-add, industrial-focused fund that closed this past February.