- January 1, 2018: Vol. 30, Number 1

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Investors appear to wait and see

by Sheila Hopkins

As 2017 wound down, data from Institutional Real Estate, Inc.’s FundTracker database indicated investment totals are down not only from their 2015 heights, but from their 2016 totals, as well. Funds closing in 2015 raised about $110 billion, while 2016’s fundraising total fell a bit short of the $100 billion mark. By contrast, funds holding final closings in the first 11 months of 2017 raised about $75 billion. This is $10 billion less than had been raised by the same point in 2016.

Reviewing the past year’s fundraising activity, it appears investors are continuing to take more defensive positions, but funds are still growing in size, and mega-funds are still dominating.

World events appear to be having an impact on investors. Uncertainty surrounding where new leaders will take their countries, what will happen to interest rates, how China’s slowing economy will affect world markets, and the belief real estate has reached its peak are keeping some investors on

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