Seventeen closed-end real estate funds held a final close in second quarter 2026, raising an aggregate $35.8 billion, according to the latest data collected by Institutional Real Estate, Inc.’s IRE.IQ database. That marks a substantial increase in capital raised from first quarter 2026, when 26 funds raised $27 billion, even as the number of funds holding a final close declined. Combined, 43 real estate investment funds raised $62.8 billion in the first half of 2026.
Fund sizes rose sharply in the second quarter. The average fund size was $2.1 billion — roughly double the first quarter’s $1.0 billion average — while the median size was $1.3 billion. Nearly two-thirds of the funds, 11 of the 17 funds, raised $1 billion or more, and five topped $3 billion.
The largest fund to close in the second quarter was Starwood Capital Group’s Starwood Distressed Opportunity Fund XIII, an opportunistic fund investing in both direct property and debt, which raised $10.2 bil
