Investor confidence in private real estate remains high
More than 80 percent of fund managers raised capital for deployment through private real estate vehicles in 2016, with investors committing a total of $128.4 billion — a 4.8 percent decrease on the previous year, according to the Capital Raising Survey 2017 published by INREV, ANREV and NCREIF.
This is the 11th annual survey exploring fund managers’ capital-raising activities, and for the third year it has been carried out on a global basis by INREV, ANREV and NCREIF. Despite the global reach of the survey, the majority of investors (50.5 percent) were based in Europe. Pension funds and insurance companies were the dominant investor type, representing a combined 64.4 percent of the total.
Almost half of the total capital raised (46.5 percent, or $59.6 billion) was for real estate investment vehicles with a European strategy. By contrast, 25.9 percent of total capital raised ($33.3 billion) was for North America–focused vehicles, and 17.8 percent ($22.9 b