Publications

- April 1, 2020: Vol. 32, Number 4

To read this full article you need to be subscribed to Institutional Real Estate Americas

Average fund size continues to grow

by Sheila Hopkins

Real estate investment has been relatively stable during the past couple of years. While there are pockets of bubble-like activity, in general, the asset class has been calm and predictable. That investment calmness can be seen in the length of time it is taking closed-end funds to reach a final close.

After several years of yo-yoing timeframes, the industry appears to have settled into expecting funds to close in about 17 months, give or take a couple of weeks.

The largest delta between funds that closed in 2019 and those that closed in 2018 can be found in the non-mega-fund category (i.e., those funds that raised less than $1 billion). At the end of 2018, the average non-mega-fund reaching final closing was on offer about 16.8 months. In 2019, this same fund took 17.5 months to close — so about three weeks longer.

The all-funds trimmed mean, which drops the top and bottom outliers, shows funds in 2018 took 16.5 months to reach their targets compared with the

Forgot your username or password?

We use cookies and other tracking technologies to personalize your user experience on our site and perform site analytics. By clicking on “I accept”, you consent to our Privacy Policy.