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Real estate fundraising during Q1 2021 fell below the first-quarter equity totals for the previous two years, according to PERE’s Q1 2021 fundraising report. While the lower tally could be attributed to the more subdued fundraising activity during the pandemic, it is notable that this year’s first-quarter total remained fairly consistent with fundraising levels for the same period from 2015 to 2018, which ranged from $32.6 billion to $37.3 billion.
The majority of the 42 property funds that closed during the period were primarily diversified by sector. However, the 16 vehicles dedicated to a specific property type were only targeted at one of three sectors: multifamily-residential, logistics and office. By comparison, PERE’s 2020 fundraising report showed sector-focused fund closes for those three sectors, as well as hospitality, retail and healthcare.
Although private real estate’s sector darlings – multifamily and industrial – continued to account for the bulk of sector-focused capital raised during Q1 2021, the former claimed a considerably larger share of the equity raised during the quarter – 57 percent compared with 44 percent for full-year 2020. Meanwhile, industrial, which was the most popular sector-focused fundraising strategy with 48 percent of capital raised last year, accounted for just 32 percent during the first quarter.
Check out our interactive report for a more extensive analysis of PERE’s Q1 2021 fundraising figures, including the quarter’s most popular strategies, top capital-raising regions, 10 largest fund closes and more.