Research - MAY 9, 2018

Investors jump back into global funds

by Denise DeChaine

Based on YTD 2018 data through the end of April, global/multi-regional private equity real estate funds have bounced back from their low point in 2017, according to Institutional Real Estate FundTracker. Back in 2014, 2015 and 2016, global and multi-regional funds raised record-setting amounts of capital. These funds were large — the largest funds each year were always global — and typically focused on an opportunistic strategy. Although global funds always account for a large percentage of the capital raised each year, just how large that percentage is varies widely.

Early numbers in 2018 show global funds regaining their mojo. YTD 2018 has global/multi-regional funds accounting for 41 percent, or $15.5 billion, of the approximately $38 billion of capital raised. This might not hold as the year progresses, but it is certainly good news for global fund fans. Just four funds made up this total, with three of them raising more than $3.0 billion. Global/multi-regional funds obviously remain some of the largest in the market.

Although the amount of capital raised for each region bounces around quite a bit each year, each region accounts for about the same percentage each year. About 10 percent or 11 percent of the funds focus on Asia Pacific, 25 percent to 30 percent are Europe focused, and around 50 percent of the funds are focused on North American strategies. The number of global funds have ranged from 6 percent of the total number of funds closed in a year to a little more than 13 percent. The remaining funds are focused on Latin America or MENA.

To read the full report, click here.

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