According to Institutional Real Estate, Inc.’s FundTracker database, 832 real estate investment funds are currently on offer. Thirty-five of those are closed-end funds launched in 2014 or earlier — about 8 percent of the total number of closed-end funds in the market. With the average closed-end fund reaching a final closing in about 19 months, give or take a few weeks — based on the most recent three-year rolling average — it is unlikely those 35 funds are actually being marketed actively. Although they have not officially reached a final close, most of the funds taking more than 44 months to close simply are not resonating with investors, and probably never will.

About 40 percent of the 832 funds (337) currently marketing are open-end, which of course will be marketing for years, maybe decades. If we assume those closed-end funds launched in 2014 or before are de facto closed, we have 460 closed-end funds currently soliciting commitments. These funds are seeking an aggregate total of at least $442 billion. Because the FundTracker database does not have maximum capital-raising target data on several funds, this amount could be significantly higher. In any case, managers are looking for a lot of capital.

No matter how many funds are launched each year, the number currently marketing has fallen by about the same number, year-over-year. That is, there were 54 more funds still marketing in 2015 than 2014. There are 52 more funds marketing from vintage 2016 than 2015. And there are 55 more funds still in the market from vintage 2017 than 2016. With 2018 so far looking to be a down year when it comes to fund launches, it will be interesting to see if this trend continues to hold.

North America, particularly the United States, is the overwhelming focus of those funds launched in 2014 or later and still fundraising. Of the 565 active funds launched during the period 2014 to year-to-date 2018 (as of Sept. 1, 2018), 256 are focused on North America. Another 202 funds are looking at European assets. Asia Pacific accounts for 67 funds, 34 have a global strategy, and the remaining six are looking at Latin America or MENA investments.

Some 80 percent of the currently marketing funds have an equity mandate, while 14 percent are debt funds and 6 percent can invest in either strategy.

Sheila Hopkins is a freelance writer based in Myrtle Beach, S.C.