PERE 200: Ranking’s second tier houses capital appeal

An analysis of this year’s PERE 200 ranking of managers by capital raised in the last five years throws up numerous findings. As we explore over the coming pages, one such discovery is an increasing geographical dispersion of capital influencers away from gateway cities, especially New York and London.

Indeed, within the top 10 biggest risers in private real estate capital markets’ second tier of closed-end fund managers, there is just one New York-based firm, JEN Partners, and one firm from London, Patron Capital. The rest are from eight other locations.

Beyond geography, another clear trend is that all bar two firms in the 10 biggest risers either specialize in, or notably include, residential in some form as their strategy. This demonstrates the residual appeal of the accommodation sectors for institutional investors still actively deploying capital. Those eight are Stonelake Capital Partners, The Davis Companies, SC Capital Partners, Patron Capital, Hemisferio Sul Investimentos, Covenant Capital Group, JEN Partners and Cortland.

The other two biggest risers, Hackman Capital Partners and Realterm, are focused on content creation real estate and logistics, respectively. The formerly mainstream office and retail sectors are conspicuously light on the top 10 risers’ agendas, indicative as much of their fall from grace as the housing markets’ allure. Indeed, significant office holdings is among the attributes shared by the firms relegated from the PERE 100 ranking to the PERE 200.

PERE’s mid-market tier of private real estate fundraisers collectively raised $121.8 billion, 9.8 percent more than last year’s cohort, a figure in line with recent peak inflation. While that is a coincidence, the increase nonetheless underscores the ranking’s continued relevance, even as the wider real estate market experiences uncharacteristically lower appeal in capital markets generally.

And here, the first tier of the ranking…