It has been increasingly difficult for closed-end real estate funds to make it over the finish line, based on fundraising activity in third quarter 2024. Only 12 closed-end real estate funds held a final close in the third quarter — the lowest number to hold a final close in more than a decade, according to Institutional Real Estate, Inc.’s IREI.Q database. But while the number of fund closings is down, the equity total was $19.1 billion — up from the $15.3 billion raised by 21 real estate funds in third quarter 2023. That is because, of the 12 real estate funds holding a final close in third quarter 2024, eight raised more than $1 billion, and four raised in excess of $2 billion.

By comparison, some $30.6 billion was raised by the 22 real estate–focused funds holding a final close in second quarter 2024, and 16 closed-end real estate funds held a final close in first quarter 2024 with total equity of $21.8 billion.

In the first three quarters of 2024, a total