DOWNLOAD: Q3 surge pulls 2021 out of fundraising slump

Fundraising activity took off during the quarter, fueled by a robust market for midsized vehicles and a record-high average closing size.

Through the first two quarters of the year, 2021 seemed poised to be a historically bad year for fundraising, but a flurry of closings during the third quarter has changed that.

More than $51 billion of funds were closed during the summer months, according to PERE data. That figure is nearly double the volume seen during Q3 2020 and even more than the $49.6 billion closed in the third quarter of 2019, private real estate’s biggest fundraising year to date.

Notably, this surge of capital did not include any mega-fund closings, as the industry closed the third quarter without notching a single $5 billion-plus fund on the year. Instead, the market saw 16 funds close between $1.2 billion and $4.3 billion as the middle of the market swelled, driving the average fund size this year to a record $599 million.

Total fund closings are still on pace for a record low, with just 193 through three quarters of the year. Underscoring this is a years-long trend toward consolidation in the sector that has continued – even accelerated – during the pandemic.

Check out our interactive report above for a more in-depth analysis of fundraising activity through Q3 2021 – including a special spotlight on the next class of mega-funds.

Download a PDF of the report here and download the data here.