Strong Real Estate Fundraising Pushes Unspent Funds to a Record $294 Billion
October 12, 2018 | Mark Heschmeyer | CoStar
Private real estate fundraising pushed the amount of unspent money to another record, according to private equity data provider Preqin, as investors show signs of growing more wary of risk.
Fifty-three funds held a final closing in the third quarter, securing a total of $24 billion. Preqin expects these figures to rise as much as 10 percent when the final tally is wrapped up. This marks a slowdown from the second quarter when 74 funds secured $32 billion, but it is still in line with historical averages.
Preqin noted the proportion of funds that met or exceeded their initial target size spiked, indicating that those funds that close are holding successful fundraising processes. Seventy percent of funds closed year-to-date have met or exceeded their target size, including nearly one-fourth of them raising 25 percent or more than targeted.
