The environment for closed-end real estate fundraising was extremely strained in fourth quarter 2024. Only 14 funds held a final close in the final quarter of the year, raising a meager $10.2 billion, according to the latest data collected by Institutional Real Estate, Inc.’s IREI.Q database. And, given that the fourth quarter has historically been the most active, the year-end slowdown is particularly stark. By comparison, fourth quarter 2023 saw 27 real estate funds hold a final close with $29.7 billion, while fourth quarter 2022 saw 57 real estate funds close with $54.0 billion in equity.

A total of 68 real estate funds held a final close in 2024, raising $84.5 billion — a significant slowdown from the 92 final closes in 2023 that raised $114.6 billion. Those figures were 187 funds and $143.8 billion in 2022.

One of the main challenges facing investors in real estate funds has been the lack of distributions from previous vintages. Without a return of capital, in