Private Equity RE: Strong Fundraising, Fewer Funds

Preqin’s US headquarters at One Grand Central Place in Midtown Manhattan. (Photo courtesy of Goldman Copeland)

NEW YORK CITY—Preqin said Thursday that the closed-end real estate fundraising market recorded another strong year in 2016, as 214 funds closed globally raising an aggregate $104 billion. The tally represents the fourth consecutive year in which fundraising for the asset class has exceeded $100 billion globally.

Since Preqin expects these figures to rise by as much as 10% as more information becomes available, the year just past could approach the post-recession record of $123 billion raised by funds closed in 2015. However, fundraising increasingly is concentrated among fewer managers: ’16 represented the lowest total number of funds since 2009. It marks the fourth annual decline in fund closures.