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2014 proves to be year of the mega-fund
Only 27 private equity real estate funds recorded final closings during the fourth quarter of 2014 — four funds short of the number closed during the fourth quarter of 2013. But what the group lacked in the number of funds, it made up for in fundraising volume.
Statistics compiled by Institutional Real Estate FundTracker show that 27 funds collectively raised $24.3 billion, with an average fund size of $900 million (€814.85 million). Despite having fewer fund closings in 2014 (105) than in 2013 (135), 2014’s funds raised aggregate equity capital of $88 billion (€79.67 billion), an 11 percent increase from 2013’s total of $79.2 billion (€71.71 billion).
The past year was the year of large fund closings. The average size of closed funds in 2014 was $838 million (€758.71 million), compared with $586 million (€530.56 million) in 2013. Leading the charge in the fourth quarter was The Blackstone Group with its Blackstone Real Estate Partners Asia, which raise