FINANCE: Private equity firms are set to have their strongest fundraising year since the financial crisis after raising $56bn globally in the first half of 2014. New research from PEI shows that European real estate has dominated the fundraising environment, with $24.6bn of the first-half total having been raised for the region. The total was reached through the closing of 101 funds during the period, the largest of which was Blackstone Real Estate Partners Europe IV on almost $7bn. PIMCO, Kildare Partners, Goldman Sachs, Tristan Capital and M&G Investment Management also made the top 10. PEI said that historically, more funds close in the second half of any given year, and with some still to announced H1 closings, it looks “highly likely that 2014 will be the strongest fundraising year for the asset class since 2008”. Across 2013, funds globally pooled $117bn, the highest figure since fundraising was hit by the financial crisis in 2008. Looking at the money raised by strategy shows that real estate debt took in the largest amount, $18.5bn, followed by opportunity on $15.9bn. Dan Gunner, director of research and analytics at PERE, said: “Private real estate fundraising has continued to perform very strongly in the first half of 2014 and we are set for the best year for the asset class since the crisis. “Investors have been particularly keen to back managers in European real estate markets and also to put their money behind real estate debt strategies. However, optimism should be cautioned since the trend of more investor money being managed by fewer managers continues. “Only 101 funds made up this half-year total, suggesting that the more established names are dominating and smaller managers are being squeezed.” bridget.o’connell@estatesgazette.com
FINANCE: Private equity firms are set to have their strongest fundraising year since the financial crisis after raising $56bn globally in the first half of 2014.
New research from PEI shows that European real estate has dominated the fundraising environment, with $24.6bn of the first-half total having been raised for the region.
The total was reached through the closing of 101 funds during the period, the largest of which was Blackstone Real Estate Partners Europe IV on almost $7bn.
PIMCO, Kildare Partners, Goldman Sachs, Tristan Capital and M&G Investment Management also made the top 10.
PEI said that historically, more funds close in the second half of any given year, and with some still to announced H1 closings, it looks “highly likely that 2014 will be the strongest fundraising year for the asset class since 2008”.
Across 2013, funds globally pooled $117bn, the highest figure since fundraising was hit by the financial crisis in 2008.
Looking at the money raised by strategy shows that real estate debt took in the largest amount, $18.5bn, followed by opportunity on $15.9bn.
Dan Gunner, director of research and analytics at PERE, said: “Private real estate fundraising has continued to perform very strongly in the first half of 2014 and we are set for the best year for the asset class since the crisis.
“Investors have been particularly keen to back managers in European real estate markets and also to put their money behind real estate debt strategies. However, optimism should be cautioned since the trend of more investor money being managed by fewer managers continues.
“Only 101 funds made up this half-year total, suggesting that the more established names are dominating and smaller managers are being squeezed.”
bridget.o’connell@estatesgazette.com
