Year-end slowdown: Coronavirus pandemic puts the brakes on fundraising
When 22 funds closed in first quarter 2020, raising only $18.8 billion, according to Institutional Real Estate, Inc.’s FundTracker database, some didn’t blink an eye, as it was on par with recent quarters. So much so that first quarter 2020’s capital raise exceeded the fourth quarter 2019 total of $15.5 billion. When 33 funds closed in second quarter 2020, raising $43.6 billion, some wondered if fundraising might defy the economic downturn. In third quarter 2020, though, it appeared the COVID-19 pandemic was beginning to have an impact on real estate fundraising activity. But while preliminary data for the third quarter indicated a possible drop-off from the previous quarter, there was actually an increase on a year-over-year basis. The $23.2 billion raised by funds that closed in third quarter 2020 exceeded the $19.9 billion raised by funds that closed in third quarter 2019.
Now we find ourselves analyzing preliminary numbers for fourth quarter 2020. At this time in 20