While COVID-19 threw a wrench in private equity real estate dealmaking and fundraising last year, investors are optimistic that deal values and volumes will pick back up in 2021, according to Preqin.
As of June 2020, assets under management exceeded $1 trillion, up 4.7% since December 2019 and an increase of more than 40% from five years ago. But fundraising in particular was hard-hit by COVID-19: in 2020, 283 funds closed at a value of $118 billion, a significant decrease from the year prior, when 494 funds closed and $179 billion was raised.
The ten largest funds secured 34% of the capital raised last year, when 5,979 deals closed with an aggregate value of $221.6 billion. Transaction numbers declined 39% and aggregate values decreased by half across all sectors.
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