Q3/16 shows weakness: fundraising activity continues to trend downward
A total of 23 private-equity real estate funds recorded final closings during third quarter 2016, raising an aggregate total of $17.4 billion, according to IREI’s FundTracker database. This represents $8.0 billion less than was raised in third quarter 2015, and two fewer funds. In third quarter 2014, 27 funds closed with an aggregate total of $22.3 billion in commitments.
Third quarter 2016 has continued the pattern of each 2016 quarter closing fewer funds, and raising less capital, than the same quarter in 2015. At this point in 2015, investment funds had closed on $89.6 billion of capital. Aggregate capital raised so far in 2016 is nearly 25 percent less, coming in at $68.5 billion. 2016 will need to add more than $41 billion in he fourth quarter if it is to meet 2015’s $110 billion aggregate raise.
During the past 12 months, global and multi-regional strategies have attracted the most interest ($35.2 billion), followed by North American– ($27