Investment and fundraising in private markets has been relatively volatile since the COVID-19 pandemic began to abate. In 2022, the first half of the year was marked by heavy deal activity, followed by a slowdown the rest of the year. In 2023, rising interest rates and financial costs led to uncertainty in private markets and saw fundraising decline somewhat. In its Global Private Market Review: 2024, McKinsey & Co. reports fundraising fell 22 percent across all private market asset classes to just more than $1 trillion. Specifically, uncertain demand, slow rent growth and higher financing costs weighted down real estate volume. Global closed-end fundraising was down 34 percent year-over-year, while funds returned 4 percent in the first nine months of the year.

Institutional Real Estate, Inc.’s IREI.Q database has seen a similar decline in fundraising among closed-end real estate investment funds, with fundraising through the third quarter down 17 percent compa