Fundraising activity dropped sharply during the first quarter of 2013 compared with the high volume posted during last year’s fourth quarter. During the first three months of the year, 21 real estate funds announced final closings, with an aggregate equity haul of US$7.6 billion, according to the latest issue of Institutional Real Estate FundTracker.

Although the number of funds is about the same as in 2011 and 2012, the amount raised has not been this low since the fourth quarter of 2010, when fund-raising activity was only US$3.5 billion.

In addition, the first quarter 2013 dollar volume is down substantially from the fourth quarter 2012 total of US$24.8 billion, which was boosted by the closing of The Blackstone Group’s US$13.3 billion fund Blackstone Real Estate Partners VII. The fundraising total for the first three months of the year also pales in comparison to previous years. I