Scientists may disagree about what exactly caused the extinction of the dinosaurs, but it is safe to assume that it was some kind of global catastrophe, such as a meteorite strike followed by never-ending, freezing winter. Read enough gloomy financial headlines and you might start believing that a similar story is unfolding for the real estate fund management industry. The Blackstone Group might be talking about raising a new multi-billion “mega-fund”, but the days of fund manager behemoths stalking the global property markets with vast reserves of investor capital are well and truly over.

Outside a small elite of operators who have proved robust during the recent crisis, many fund managers are suffering in the post–credit crunch environment — or, worse, are being eaten by larger or healthier rivals. With a few notable exceptions, the capi