LONDON—The fourth quarter of 2017 saw private equity fundraising in general pick up the pace and reach a new annual high after a slowdown in Q3. However, Preqin says that pickup didn't extend to real estate, where the 12-month global total fell short of the previous year's, not to mention the record haul of US$136 billion that private real estate funds brought in for 2015.
The year that just ended saw 263 real estate funds close for a combined US$109 billion in investor commitments. That compares to 321 funds that closed on a total of US$126 billion in 2016 and 351 funds that garnered a record US$136 billion in 2015.
“The private real estate market is currently running in counterpoint to the wider private capital industry,” says Oliver Senchal, head of real estate products with Preqin. “Whereas private equity and private debt funds have both marked record years in '17, the real estate asset class has seen activity retreat slightly over the past 12 months.
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Paul Bubny
Paul Bubny is managing editor of Real Estate Forum and GlobeSt.com. He has been reporting on business since 1988 and on commercial real estate since 2007. He is based at ALM Real Estate Media Group's offices in New York City.
