Private equity fundraising for commercial real estate has had a slow start to the year, still hampered by the effects from the pandemic.
In Q1, fundraising continued to suffer, with the number of funds reaching final close more than halved to 52, securing $25 billion. Preqin says this a 25% decline in aggregate capital raised and a more than 50% fall in the number of funds reaching final close compared to Q1 2020.
In Q1, 1480 deals were completed with an aggregate value of $44 billion. These represent declines of 24% and 44%, respectively, compared to Q1 2020. Over the next 12 months, 58% of investors expect to commit less than $50 million of fresh capital to funds.
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Leslie Shaver
Les Shaver has been covering commercial and residential real estate for almost 20 years. His work has appeared in Multifamily Executive, Builder, units, Arlington Magazine in addition to GlobeSt.com and Real Estate Forum.
