Real estate private equity funds were not a new investmentcapital source at the start of this decade, but few expected theglobal explosion in capital raising that happened during the firsteight years. During the formative years of the modern real estateprivate equity fund industry, from 1990 to 1999, the total raisedby funds was just shy of $125 billion. Most of the capital flowinginto real estate PE funds during those years actually came between1997 and 1999 when funds took in more than $69 billion. But theneverything changed.
From 2000 through 2003, according to industry publicationPrivate Equity Real Estate, the industry averaged inflowsof more than $37 billion per year, but, in 2004, real estateprivate equity came of age when investors pumped $84 billion intothe sector. Between 2004 and 2008, investors poured more than $625billion into private equity funds.
Sometime in early 2008, the sector officially topped $1 trillionin raised capital since 1990. What happened? Real estate was in anextraordinary up-cycle. Pension funds and other investors wereadding real estate to their broader investment strategies orexpanding their existing allocations, and private equity funds gavethem the opportunity to invest large sums at attractive returns.The capital began to flow freely and this, combined with realestate emerging as a global asset class, shifted the sector intohigh gear.
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Howard Roth
As the Global Real Estate Leader, Howard coordinates the firm's activities across a broad array of related services around the world. EY has the largest integrated real estate practice of any Big Four firm, with more than 7,500 professionals around the world providing audit, tax, transaction and advisory services to owners, builders, lenders and users of real estate. EY serves more than 4,000 real estate clients throughout the world. Howard brings more than three decades of experience in the real estate industry. He has worked extensively with major real estate private equity funds, domestic and offshore real estate investment trusts and large public homebuilders, as well as numerous construction and hospitality companies. His credentials include a BA in Accounting from Hofstra University. He is a member of the American Institute of Certified Public Accountants and New York, New Jersey and Connecticut Society of CPAs, has been a columnist for several major industry publications and is frequently a speaker at key real estate industry events.
