Publications

- October 1, 2015: Vol. 27, Number 9

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Emerging funds are a study in contrasts

by Sheila Hopkins

Conventional wisdom holds emerging fund managers have a much harder time raising capital than established managers do. The numbers pulled from Institutional Real Estate, Inc.’s FundTracker database, however, indicate emerging funds launched since 2013 have had about the same success as non-emerging funds launched during that time.

Most of the managers defined as emerging for this report have a limited track record (three or fewer funds closed), though a few are on the list because they are a small firm or minority-owned.

Using this definition, 44 funds, or 8 percent, of the total 559 funds launched from 2013 through August 2015 were sponsored by emerging managers. Those 44 funds targeted $14.9 billion and have so far raised $9.5 billion, or 64 percent of their goal.

Some 32 percent — 14 of the 44 funds launched since 2013 — have closed, with the average closing time coming in at 12 months. These numbers compare favorably with the general market. All funds

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