Fundraising

DOWNLOAD: Q1 2024 fundraising remains at a 12-year low

With only $19.8bn raised, the first quarter of 2024 recorded the lowest Q1 fundraising amount since 2011 when $15.2bn was corralled.

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The beginning of 2024 was a continuation of the soft fundraising market in 2023, with rate cuts yet to materialize and a wave of global elections creating uncertainty for some investors.

With only $19.8 billion raised, the first quarter of 2024 saw the lowest Q1 fundraising amount since 2011, when $15.2 billion was corralled. This meagre total comes after a lacklustre fundraising year in 2023, when $166.7 billion was gathered – the lowest amount of capital raised since 2016’s $166 billion. Moreover, the 2023 total would have been even lower without Blackstone’s $30.4 billion Blackstone Real Estate Partners X.

Interest continued to diminish for office funds in Q1 2024, while increasing for hospitality. For sector-specific funds, the percentage of capital raised for office funds dropped from 8 percent in 2020 to zero in Q1 2024. On the other hand, the capital raised for hospitality funds increased from 3 percent to 15 percent during the same period, reflecting the sector’s recovery following the easing of pandemic-era travel restrictions.

Value-add overtook opportunistic as the most popular strategy in Q1, where it garnered 71 percent of the total capital raised in the period. By contrast, the strategy represented just 26 percent of fundraising volume in 2023.

Notably, six of the top 10 funds closed in Q1 2024 were value-add funds, specifically the $5.16 billion Blue Owl Real Estate Capital Fund VI, the $3.1 billion Crow Holdings Realty Partners X, the $1.57 billion Cabot Industrial Value Fund VII, the $1.04 billion American Landmark Fund IV, the $950 million NB Partners IV and the $500 million KSA Logistics Fund III

Meanwhile, opportunistic fell from 38 percent in 2023 to a mere 6 percent of the total capital raised in Q1, trailing both real estate debt and core-plus as the fourth-most popular strategy. That said, opportunistic is the target strategy of seven of the top 10 funds in market. These include Carlyle Realty Partners X, the only newcomer in the top 10 funds in the market since year-end 2023. Launched in January 2024, the fund is seeking $8 billion.

Download the data here.