PE Funds Hit New High for Capital Returns

LONDON—More capital was distributed to private real estate fund investors in 2013 than in any year previously, with a total of $138 billion returned to investors globally as a result of managers selling assets, Preqin said Thursday. That’s more than double the $67 billion they received in 2012.

“The increase in valuations in many real estate markets around the world, and improving confidence leading to a good supply of potential buyers, has enabled fund managers to realize many of their investments,” says Andrew Moylan, head of real assets products for Preqin, headquartered in London and New York City. “2013 was a record year in terms of distributions to investors and the first year since 2003 in which the amount of capital distributed to limited partners exceeded the amount of capital called up to make new investments.” Accordingly, Moylan says, “these institutional investors have more capital available to reinvest in real estate funds, and many plan to place large amounts into private real estate funds in the coming year.”