- December 2011: Vol. 23 No. 11

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Offerings Flood the Market Despite Limited Capital

by Larry Gray

While current economic conditions don’t help the fund-raising environment, the capital commitment overhang from previous years also has placed some investors in a holding pattern. And the large number of funds competing for limited capital makes for a long and bumpy road littered with fund-raising extensions and numerous failed efforts. However, despite a gloomy outlook for fund-raising in the months ahead, investment managers continue to roll out new products. Through the first nine months of the year, sponsors have rolled out more than 150 pooled investment vehicles. Collectively, these 2011 vintage funds were seeking to raise approximately $81 billion of equity capital.

Year to date, sponsors have presented 51 new opportunity funds, 54 value-added funds and 39 funds with a core or core-plus investment strategy. Many of the recently launched opportunity funds are zeroed in on the United States property markets and have a debt-related focus or aspect to their investment st

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