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Nearly 950 real estate funds seek capital
One-third of all open real estate funds were launched since the beginning of 2016, according to Institutional Real Estate, Inc.’s FundTracker database, which reports 949 real estate investment funds are currently on offer. About one-third of these funds are open-end, so you would expect them to have long tails. Another third have been launched since 2016, so those are still relatively healthy. But 161 closed-end funds — 17 percent of the total — were launched prior to 2014.
Although funds launched prior to 2014 might not have officially reached a final close, it is unlikely those funds are still actively raising capital. Most of the funds taking more than 44 months to close simply are not resonating with investors. By comparison, the average time in the market for funds closing in the past three years has been in the neighborhood of 18 months, give or take a couple of weeks. So far in 2017, the average time for a fund to reach final close is standing at 16 months, thoug