Fundraising by Asia-based private equity real estate firms has increased dramatically in recent years. From 2005 to 2008 the aggregate capital raised managers in this region increased nearly six-fold, from $2.1 billion in 2005 to $12.2 billion in 2008. In 2009 to date, fundraising has been considerably slower, with eight vehicles raising an aggregate $2.6 billion. This decline is not exclusive to managers in Asia, and is a consequence of the current economic climate, which is being felt by private equity real estate fund managers worldwide. Nonetheless, from our conversations with institutional investors, there are indications that fundraising may begin to improve for Asia-based managers. Investors have become increasingly interested in gaining exposure to Asia in last few years and although they may not have been actively investing in this region during this uncertain investment environment, it is likely that they will include Asia in their private real estate portfolios in the longer term.
A large proportion of Asia-based fund managers are located in India, with 22 private equity real estate firms headquartered there. Globally, India is home to the fourth-highest number of private equity real estate firms, behind the US, the UK and Australia. There is also a significant number of firms based in Singapore (12), including Capitaland, the 18th-largest private equity real estate firm by capital raised. Half of the top 10 Asia-based fund managers by capital raised are based in Singapore.
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