LONDON—The year just past looks to be the biggest for closed-end private real estate fundraising since before the global financial crisis, according to Preqin. However, the alternative assets data firm notes that the rising tide did not, in this case, lift all boats, since not all funds or types of funds did equally well.

Globally, private RE funds raised a combined US$107 billion in 2015, according to the latest available data, which would put the total just below the US$111 billion raised in 2014. However, Preqin expects this figure to increase by 10% to 20% as new data become available.

Opportunistic and value added funds performed best last year, securing US$54 billion and US$22 billion, respectively in investor commitments, according to the latest available data. More than one-quarter of the total for opportunistic fundraising went to a single fund: Blackstone Real Estate Partners VIII, at US$15.8 billion the largest private RE fund on record.

Conversely, private real estate debt funds fell well short of the '14 success, amassing US $14 billion through the year. This represents a year-over-year of 43%, although the final total could be higher when more data become available.

North American funds garnered the lion's share of capital commitments, raising US$71 billion among 100 funds focusing on the region. Europe-focused funds raised US$23 billion, while Asia- focused funds raised US$11 billion.

Thirty-six percent of RE funds that closed last year exceeded their target size, a decrease of eight percentage points from the year prior. The proportion of funds which failed to meet their target held steady at 42%.

"2015 was another strong year for real estate fundraising, likely representing a fifth successive annual increase in investor commitments," says Andrew Moylan, head of real assets products at Preqin. He adds, however, that "the number of funds reaching a final close is down from '14, as more capital was concentrated among fewer fund managers. For many firms marketing funds, raising capital remains a tough prospect."

Another challenge, says Moylan, is finding value. "With real estate dry powder now over a quarter of a trillion dollars, fund managers have lots of capital available to invest, but finding compelling opportunities at attractive prices is a difficult proposition." Nonetheless, private RE firms plan to be in the game to find those opportunities: Preqin notes that 492 funds globally are in market, seeking a combined US$174 billion.

In its 2016 Global Outlook, EY notes that "while there is no doubt that competition in core markets continues to intensify, especially as cross-border investment ticks up, demand for space in primary cities across the US, Europe and Asia remains high. Competition and high prices have led some, over the last 18—24 months, to move farther from the city centers of core markets and also to move across the risk curve toward secondary cities. Here we are seeing good new product origination, and there is certainly opportunity, although newer investors may need to tread with caution as this part of the market is deep into the real estate cycle."