Early in 2022, the importance of private equity was never clearer. A big reason ESG grew as a force in CRE investment expectations is because it became a priority for many private equity firms. More recently, it has been expected the private equity will step in, at least in part, where other CRE lenders have fled.
Now with the first quarter of 2023 closed, the view of private equity as a directing force seems murkier, according to data from Preqin.
"It's been a tough start to the year for real estate," the firm said. "Preqin Pro data shows there have been only 1,399 real estate deals by private funds so far. By contrast, in the first quarter of 2022 alone, there were 1,997. Fundraising has also taken a considerable hit. In the first three months of 2023, $22.9bn was raised across 96 funds, the worst quarter by value for fundraising since 2017."
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