Getting specific on fundraising
Most funds tracked by Institutional Real Estate, Inc.’s FundTracker database focus on multiple property types, but within the universe of property-specific funds in the market, multifamily is the most common.
An analysis of property-specific funds currently in the market reveals 41 percent of the funds are focused on the multifamily sector. Because these funds tend to be smaller, however, they are only targeting 28 percent of total equity fundraising by property-specific funds. Office funds and property-specific funds investing outside the “four main food groups” represent about 25 percent and 27 percent, respectively, of the total investment capital targeted by property-specific funds, but only account for 16 percent and 19 percent of the number of funds, respectively.
The typical office-focused fund is raising more than $800 million, while the typical multifamily- or industrial-focused fund is raising less than $400 million. The average retail-focused fund fall