Fundraising. Total capital raised in the first quarter dropped to $18 billion, compared with $51 billion in the first quarter of 2019. Less risky value-added funds captured the majority of investor capital in the first quarter, raising $10 billion from 19 funds closed.

Funds in Market. Both the number of funds raising capital, and the aggregate amount of capital targeted have risen year on year. "As capital consolidation continues to characterize the real estate fundraising market," the report predicts, "the largest funds are set to sweep up most industry capital."

Investors. The proportion of investors planning to make a single fund commitment over the next 12 months has increased from 61% in the first quarter of 2019 to nearly 72% in this past quarter. But only 2% of investors plan to commit to 10 or more funds over the next year, compared with 6% this time last year.

Deals. For the first time in three years, deal activity dropped dramatically in all regions and in all property sectors. The number of deals in North America was the lowest for the region in any quarter in recent years, dropping well below the rest of the world. The report blames the economic markets roiled by COVID-19 amid the increasing competition for assets during this period.

Performance. In general all other private capital asset classes, except private debt, outperformed real estate over a one year period from June 19, 2018, to June 19, 2019. The dip in real estate performance is especially seen in strategies associated with higher risk.