Publications

- March 1, 2019: Vol. 31, Number 3

To read this full article you need to be subscribed to Institutional Real Estate Americas

Standing out: Managers look for ways to differentiate themselves and get attention

by Steve Bergsman

Two trend lines in real estate private equity are crossing, which is not necessarily a good thing. Institutional property investors are reducing the number of managers they work with at the same time new managers are emerging almost on a daily basis. To complicate matters, mega-funds, those raising more than $1 billion, are receiving a greater share of the total amount of capital raised in private equity real estate markets.

A smaller number of larger funds are taking more of the capital allocated to real estate. Institutional Real Estate, Inc.’s FundTracker database reports the average size of a real estate private equity fund closing in 2016 and 2017 was approximately $660 million. Average fund size bumped up to $850 million in 2018, according to preliminary numbers for 2018, which saw $112 billion raised by only 132 funds.

“Limited partners are looking to consolidate general partner relationships,” says Michelle Wells, executive vice president of investor rela

Forgot your username or password?

We use cookies and other tracking technologies to personalize your user experience on our site and perform site analytics. By clicking on “I accept”, you consent to our Privacy Policy.