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Fundraising in 2021 was one of the strongest on record

A rebound in popularity for higher-risk, higher-return strategies helped to recharge capital raising volumes after a muted first half of the year.

Click on the top right of the report to view full screen.

Private real estate fundraising ended on a robust note in 2021, closing at $175.7 billion, the third-highest full-year total since PERE began tracking fundraising data in 2008. This represented a strong finish to the year after a less-than-promising start, with the first six months of 2021 representing the smallest H1 total since 2012.

Higher return strategies continued to command the greatest share of fundraising volume, representing nearly 71 percent of total capital raised in 2021, up from approximately 60 percent the prior year. In fact, this was the second-highest percentage for higher-return strategies in the past five years, coming in slightly behind the 73.4 percent share in 2019.

Furthermore, opportunistic and value-add were the only two strategies where their respective shares of aggregate fundraising volume increased from last year. The former remained the most popular fundraising strategy, accounting for 37.6 percent of capital raised, while the latter represented 33.4 percent.

Beds and sheds once again claimed the lion’s share of capital raised among sector-specific strategies at 87 percent, although this had slipped from 92 percent in 2020. Industrial, the most sought-after sector in 2020 by total capital raised, saw its fundraising power moderate slightly in 2021, with its share of equity totals declining from 48 percent to 42.2 percent last year. Industrial’s lost ground went to hospitality, which rose from 2 percent to 6 percent, and office, which grew from 1 percent to 4.2 percent.

Dive into our interactive report for a fuller analysis of PERE’s FY 2021 fundraising figures, including the quarter’s most popular strategies, top capital-raising regions, 10 largest fund closes and more.

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