Following a second quarter slowdown, fundraising activity stormed back in the third quarter of 2021, raising US$41.3 billion, the highest third quarter total ever — surpassing the US$37.17 billion raised in the third quarter of 2018 — and the fifth-highest quarterly total ever recorded in this 15-year data series, according to Institutional Real Estate, Inc’s IREI.Q database. The only quarters to post higher totals were the first quarter of 2019 (US$66.6 billion), the second of quarter 2008 (US$57.2 billion), second quarter 2007 (US$48.1 billion) and the second quarter of 2020 (US$47.1 billion).

In addition, a record 16 megafunds — funds raising US$1 billion or more — reached final closings during the third quarter. The megafunds accounted for US$30.4 billion, 74 percent of the total capital raised. Through the first nine months of the year, 30 megafunds have closed, only three short of the record 33 megafunds that closed in all of 2017.

Third quarter fundrai