Private equity real estate fundraising remained slow in the first quarter of 2011, with $5.8 bn (EUR 4 bn) raised by funds holding a final close, according to Preqin, which provides data on the alternative assets industry.
Private equity real estate fundraising remained slow in the first quarter of 2011, with $5.8 bn (EUR 4 bn) raised by funds holding a final close, according to Preqin, which provides data on the alternative assets industry.
Preqin said fundraising remains at the slowest pace since 2003 but a number of interim closes suggests the fundraising drought may be ending.
A total of 17 private equity real estate funds reached a final close in Q1 2011 having raised an aggregate $5.8 bn. This represents a small decrease on the $6.5 bn raised in Q4 2010. Fundraising for the asset class remains far slower than the industry saw in 2006-2008, when quarterly totals were typically in excess of $30 bn.
Funds primarily focusing on North America raised the most capital, with eight funds receiving aggregate commitments of $3.5 bn. Five Asia and Rest of World-focused funds received an aggregate $1.2 bn, with four Europe-focused funds raising $1.1 bn.
In addition to the 17 funds which held a final close in the quarter, 40 funds held an interim close during Q1, raising a total of $5.7 bn towards their overall targets.
There are currently 439 private equity real estate funds in market seeking aggregate commitments of $160 bn, Preqin said.
