Despite a challenging fundraising environment, the second quarter saw an increase in the number of closed-end real estate funds holding a final close, compared with the previous quarter, and an increase in the aggregate equity raised. And, despite some concerns that allocations to real estate credit have involved more talk than action, the second quarter saw the final closes of several billion-dollar-plus funds focused on real estate debt investment.

Some $31.3 billion was raised by the 20 real estate–focused funds holding a final close in second quarter 2024, according to the latest results from Institutional Real Estate, Inc.’s proprietary database, IREI.Q. By comparison, 16 closed-end real estate funds held a final close in first quarter 2024 with total equity of $21.8 billion, and 24 funds raised $25 billion in fourth quarter 2023.

On a year-over-year comparison, the aggregate equity raised by funds holding a final close in second quarter 2024 was half of the $