When 28 funds closed in the first quarter of 2019, raising a record $63.6 billion, there was talk of 2019 possibly shattering the 12-month record of $134.9 billion set in 2008. Indeed, first quarter set the stage for the mega-fund phenomena of 2019 when two super mega-funds reached final closings. The Blackstone Group closed Blackstone Real Estate Partners IX, raising $17.3 billion, and Brookfield Asset Management closed Brookfield Strategic Real Estate Partners with $15.0 billion. These two funds alone accounted for more than half of first quarter 2019’s fundraising total. And, in addition, another nine mega-funds closed during first quarter, raising $23.7 billion. All in all, mega-funds accounted for almost 90 percent of the first-quarter fundraising total.
But then investors started tightening their purse strings. Growing global economic and political concerns raised red flags. In addition, high asset valuations and stiff competition among investors have presented challe
