Resuming the climb: Finding private real estate opportunities amid adversity
A total of 47 new investment funds were launched during fourth quarter 2020, resuming the climb after a dip in third quarter 2020 (36 funds seeking $21 billion). Fourth quarter brought the year-end total to 156 new funds. As a group, the 156 funds launched are seeking to raise a fundraising target of $86.9 billion. Looking at the fourth quarter by itself, the funds are seeking to raise approximately $24.9 billion, the highest quarterly total in 2020 but the lowest target since fourth quarter 2019’s aggregate fundraising target of $34.5 billion.
Harrison Street’s Harrison Street Real Estate Partners VIII was the largest fund launched in fourth quarter 2020. The closed-end opportunistic fund launched in mid-November 2020 and is seeking to raise approximately $2 billion. Fund VIII is designed to provide innovative and flexible capital to demographic-driven, needs-based assets across the senior housing, healthcare, student housing, life sciences and storage sectors in the Uni