Closed-end real estate fundraising activity had its best year since 2021, with 119 funds raising US$151.5 billion in 2025, according to data collected by Institutional Real Estate, Inc’s IRE.IQ database, marking a 66 percent increase on 2024’s US$91.4 billion raised by 79 closed-end real estate funds. Fourth quarter 2025 saw 29 closed-end real estate funds raise US$32.6 billion, as valuations achieved greater clarity and real estate transaction volume increased.
Fund sizes increased in the fourth quarter. The average fund size in the fourth quarter was US$1.1 billion, and the median size was US$775 million. More than one-third of the funds raised more than US$1 billion, and six closed with more than US$2 billion. This stands in contrast to the previous quarter, which saw an average fund size of
