Closed-end real estate fundraising activity had its best year since 2021, with 119 funds raising $151.5 billion, according to the latest data collected by Institutional Real Estate, Inc.’s IRE.IQ database, marking a 66 percent increase on 2024’s $91.4 billion raised by 79 closed-end real estate funds. Fourth quarter 2025 saw 29 closed-end real estate funds raise $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 $1.1 billion, and the median size was $775 million. More than one-third of the funds raised more than $1 billion, and six closed with more than $2 billion. This stands in contrast to the previous quarter, which saw an average fund size of $750 million.
The largest fund to close in the fourth quarter was Sculptor Real Estate Fund V, an opportunistic fund sponsored by Sculptor Capital Management, with a fundraise of near
