Aggregate capital raised by real estate debt funds reached $5.5 billion from 10 closes in Q4, second only to value-added funds, which totaled $6 billion on 25 funds, according to Preqin's quarterly update on real estate.
Real estate debt funds raised less in 2023 than in 2022, but there was a strong showing toward the end of the year and into this year, Henry Lam, AVP, Research Insights, said in the report. Indeed, in January alone there have been numerous reports of funds raising $1 billion or more for CRE opportunities.
The need for this dry powder is clear: CBRE is suggesting that US office owners will face a financing gap of $52.9 billion this year as just one example.
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