Fundraising activity perks up as mega-funds join the fray
While the second quarter fundraising volume was not earth shattering, the number of funds that contributed to the total was noteworthy. During the period, 31 private equity real estate funds wrapped up their marketing efforts, raising a total of $14.9 billion, according to Institutional Real Estate FundTracker. It was the largest number of fund closings recorded since third quarter 2008 when 39 funds were finalized. The $14.9 billion sum represents a substantial increase from the first quarter figure of $7.9 billion and the second quarter 2012 total of $9.5 billion.
A slew of smaller funds closed during the quarter, including 18 vehicles that raised approximately $300 million of equity or less. Offsetting the large number of small funds and boosting the quarterly dollar volume was the announced closing of Starwood Capital Group’s Starwood Distressed Opportunity Fund IX (SOF I