Private Real Estate Funds See Banner Year In 2015
Data from alternative assets data firm Preqin shows 2015 was the biggest year for private real estate funds since the financial crisis, with $107B raised. It expects that number to rise 10% to 20% with the release of the full 2015 stats, outstripping the $111B from 2014.
But not all private funds are created equal—opportunistic and value-added funds raked in the most cash at $54B and $22B, compared to debt funds at only $14B (43% of last year).
Blackstone (head of real estate Jonathan Gray pictured) alone snagged $15.8B of that opportunistic fund cash. But while fundraising is up, it’s hard to find sweet places to put that cash for good returns.
Even with a quarter of a trillion dollars of real estate dry powder, Preqin head of real assets products Andrew Moylan says fund managers have a hard time finding “compelling opportunities at attractive prices.” [GlobeSt]