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An estimated $98.5 billion in aggregate capital was raised by real estate funds in the first nine months of the year, reflecting a decline in fundraising momentum amid the ongoing coronavirus-triggered market uncertainty, according to PERE’s Q3 2020 fundraising report. In fact, Q1-Q3 2020 was the lowest year-on-year global fundraising period in the past five years, the data showed.
Only 139 funds closed during Q1-Q3 2020, compared with 280 closes recorded in the whole of 2019, according to the report. However, additional capital raised during the remaining three months of the year is expected to push up this number, with PERE estimating a further $32 billion in fundraising to be completed by the year-end. Still, it is unlikely to reach last year’s total of $157.4 billion.
The lack of large regional funds and mega-fund closes, especially on the opportunistic side, is nonetheless a striking difference from the previous year’s fundraising figures. Aside from Blackstone‘s two funds – Blackstone Real Estate Partners Europe VI and Blackstone Real Estate Debt Strategies IV – there were no fund closes above $4 billion. There was also only one Asia-focused fund in the top 10 list: the $2.7 billion Secured Capital Real Estate Partners VII. Furthermore, the bulk of the funds currently in the market are North America-focused, with few targeting Europe and Asia-Pacific.
Dive into our interactive report for a fuller analysis of PERE’s Q3 2020 fundraising figures, including the quarter’s most popular strategies, top capital raising regions, 10 largest fund closes and more.