PERE 100 and PERE 200: New paths to fundraising dominance

Private real estate’s largest managers are maximizing their chances of fundraising success during a challenging market environment.

The 100 largest capital raisers in the private real estate industry have collected an aggregate $699.7 billion from investors for closed-end value-add and opportunistic funds in the past five years.

On the surface, that is a significant amount – especially given those five years encompassed a global pandemic and its tumultuous aftermath, multiple geopolitical conflicts, a historic interest rate hiking cycle and major national political elections.

Through all of this, real estate retained a valued place in institutional investors’ portfolios.

However, comparing the 2024 PERE 100 ranking with last year’s league table shows even private real estate’s most prolific capital raisers have had to stomach a slower pace of fundraising, with the PERE 100 losing 3.1 percent year-on-year from its rolling five-year total.

This decline marks the first time the capital total for PERE’s top-flight ranking has shrunk year-on-year since 2014. By contrast, last year’s cohort attracted a record $722.2 billion in aggregate, up 13.3 percent from the prior year.

Since liquidity in the global private real estate market began to dry up toward the end of 2022, institutional investors have had limited capital resources with which to recommit to the asset class.

Notably, however, these same pressures have not stalled the growth of the second tier of real estate fundraisers, the PERE 200. Indeed, total capital raised by managers ranked between 101 and 200 amounts to $132.1 billion for the class of 2024, up 8.4 percent on last year’s cohort. This is in part a reflection of more downward movement between rankings than upward.

Nevertheless, with the thresholds for inclusion in both the PERE 100 and PERE 200 rising once again – by $269 million and $77 million year-on-year, respectively – the pressure to stay competitive in a universally challenging market is keeping managers on their toes. As we explore in the following pages, an increasing share of managers are venturing down new paths to fundraising success.

 

Private real estate’s top managers

 

PERE 100/200 Methodology

While the 2024 edition of the PERE 100/200 rankings carry forward the same methodology as previous years, there is one critical change.

The 2024 PERE manager rankings are based on the amount of private real estate direct investment capital raised by firms for funds closed between January 1, 2019 and December 31, 2023 as well as for funds that were in market at the end of the counting period.

Importantly, in line with previous years, only value-add and opportunistic vehicles are considered. This year, the counting period of the ranking has been adjusted from five years and three months previously to precisely five years. This is to allow for a better comparison against other GP rankings published by PERE’s affiliate publications.

We give highest priority to information that we receive from or confirm with the private real estate firms themselves. When these firms confirm details, we seek to ‘trust but verify.’

Some details simply cannot be verified by us, and in these cases we defer to the honor system. In order to encourage co-operation from private real estate firms that might make the ranking, we do not disclose which firms have aided us on background and which have not. Lacking confirmation of details from the firms themselves, we seek to corroborate information using firms’ websites, press releases, limited partner disclosures, etc.

What counts?

Structures
• Limited partnerships
• Co-investment/sidecar vehicles
• Seed capital or manager commitment

Strategies
• Opportunistic
• Value-add

What does not count?

• Expected capital commitments
• Capital raised for open-end funds that falls outside the counting period
• Public funds
• Funds of funds
• Non-discretionary vehicles
• Secondaries vehicles
• Core strategies
• Core-plus strategies
• Private equity funds
• Infrastructure funds
• Hedge funds
• Capital raised on a deal-by-deal basis
• Debt issuing funds