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Fundraising report: Fundraising slowdown continues amid market uncertainty
Fundraising activity in 2022 is off to a slow start following a record-setting fourth quarter in 2021. A total of 34 private equity real estate funds recorded final closings during second quarter 2022, raising an aggregate $19.3 billion, according to the IREI.Q database. It’s the lowest fundraising volume since third quarter 2017 when 32 funds raised $18.2 billion. This follows the uninspired first quarter fundraise total of $19.4 billion. Both figures pale in comparison with the fourth quarter 2021 total of $65.3 billion.
For the first half of the year, the fundraising total of $48.2 billion ranks as the lowest total since 2014’s figure of $44.1 billion, but it is on par with 2021’s first-half total of $50.2 billion.
Uncertainty in the global financial markets has investors on edge as they deal with threats from inflation, rising interest rates and a slowing global economy, not to mention the conflict between Russia and Ukraine, which continues to escalate globa