An Overview of US-Based Private Real Estate Funds on the Road – November 2015

by Evan Barker

  • 19 Nov 2015
  • RE

Preqin’s Real Estate Online service tracks 282 US-based closed-end private real estate funds currently in market, which are seeking to secure $95bn in aggregate capital commitments. Half of these funds in market have held at least one interim close, collectively raising $19bn.

Higher risk strategies represent the majority of private real estate funds in market by managers headquartered in the US; 47% are primarily value-added vehicles, while 26% are opportunistic. Debt vehicles make up 12% of the funds in market, followed by distressed (6%), core-plus (6%), and core funds (3%).

As shown in the chart above, US-headquartered managers can expect to spend a long time fundraising; the majority of funds have been raising capital for over 12 months, and nearly a quarter have spent more than two years in market.

There are 17 private real estate funds in market managed by US-based firms targeting $1bn or more in institutional capital commitments. One of the largest funds in market is Oaktree Real Estate Opportunities Fund VII. The Los Angeles-based fund is targeting $3bn for investment in global real estate and real estate-related debt, companies, securities and other assets. The fund has a preference for investments in high-growth US markets, as well as distressed opportunities primarily in real estate debt and restructurings. These opportunities will involve value-oriented investments, rescue capital and distress-for-control prospects throughout the real estate down cycle.

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