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Private Real Estate Funds Are Crushing Their Targets


It's been a winning year for private real estate funding, with funds exceeding equity goals, PERE Research & Analytics says. About 34% of private real estate funds exceeded their targets, more than double the 2008 percentage. 

The private real estate fund of the hour is Blackstone's Blackstone Real Estate Partners VIII, which raked in a hefty $15.8B after setting a $13B goal. Other star funds include KSL Capital Partners' KSL Capital Partners IV, closing at $2.67B and Starwood Capital Group's Starwood Distressed Opportunity Fund X with $5.58B.

Those who unfortunately missed their targets by the widest margin include Morgan Stanley Real Estate Investing's North Haven Real Estate Fund VIII with only $1.7B of its $3B equity goal.

Interestingly, the funds that smashed their targets launched a year or less before their final close. The ones that hit below were on the market for at least two years. Timing may really be everything. [PERE]