Up, up and away: A closer look at year-to-date 2014 and the past 12 months in the North American funds market
As one of many of Superman’s catchphrases, “Up, up and away!” seems as good a way as any to describe the real estate investment fund market in the United States. Fundraising activity during the first half of 2014 has been building, from the United States and Canada having only 16.4 percent of the investment by geographic focus in the first quarter to dominating the second quarter with 59.6 percent of the fundraising activity by geographic focus.
In preliminary numbers for third quarter 2014, funds focused solely on North America account for 27 percent of fundraising with additional help from shared geographic investment (i.e., international investments including North America) that make up approximately 51 percent of geographic investments.
As mentioned in the cover story, a big help to boosting those numbers is Lone Star Funds’ Lone Star Fund IX, a mega-fund that closed during third quarter 2014 and raised $7.2 billion.