A total of 22 private equity real estate funds reached final closings during third quarter 2019, raising an aggregate of $19.9 billion, up slightly from the $19.3 billion raised in the second quarter, according to Institutional Real Estate, Inc.’s FundTracker database. Fundraising was sluggish for the second consecutive quarter when compared with the record-setting first-quarter volume of $63.3 billion.
The year-to-date total of approximately $103 billion could reach a year-end figure of approximately $127 billion if fourth-quarter volume achieves the average from the previous five years’ final quarters of $24 billion.
Investor uncertainty and cautiousness seem to be affecting fundraising, and the slowdown also could be attributed to the record amount of dry powder in the hands of investment managers, which are finding it increasingly difficult to secure appropriate investments.
During the third quarter, 10 mega-funds closed, bringing the year-to-date total