- March 1, 2015: Vol. 27, Number 3

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2014 proves to be year of the mega-fund

by Denise DeChaine

Only 27 private equity real estate funds recorded final closings during fourth quarter 2014 — four funds short of the number closed during fourth quarter 2013. And what the group lacked in number of funds, it made up for in fundraising volume.

Statistics compiled by Institutional Real Estate FundTracker show 27 funds collectively raised $24.3 billion, with an average fund size of $900 million. Despite having fewer fund closings in 2014 (105) than in 2013 (135), 2014’s funds raised aggregate equity capital of $88 billion, a 11 percent increase from 2013’s total of $79.2 billion.

The past year was the year of large fund closings. The average size of closed funds in 2014 was $838 million, compared with $586 million in 2013. Leading the charge in the fourth quarter was The Blackstone Group with its Blackstone Real Estate Partners Asia, which raised $5 billion.

2014 was the year of the mega-fund, with a 11 percent increase in aggregate equity capital d

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