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California-Headquartered Private Equity Real Estate Fund Managers in February 2012

by Sarah Unsworth

  • 03 Feb 2012
  • RE

As of February 2012, there are 143 private equity real estate fund managers that are headquartered in California. These firms have raised an aggregate $74.1bn through private real estate funds in the past 10 years.

The years between 2005 and 2008 saw the highest levels of fundraising for California-based funds, and their fundraising reached a peak in 2007 when 38 funds raised a total of $23.3bn. In 2005, 30 funds secured $9.9bn in commitments from investors, rising to $10.2bn from 22 funds in 2006. Following the peak in fundraising in 2007, the aggregate amount raised by firms headquartered in 2008 dropped, with $12.2bn raised from 30 funds that year.

There was a significant drop in private equity real estate fundraising worldwide in 2009 following the impact of the financial crisis, and California-based firms were not spared from constricting fundraising markets. During 2009, just 19 funds closed, raising an aggregate $4.4bn. The number of funds successfully closing in the past two years has remained relatively low, with 14 funds managed by firms based in California closing in 2010, raising $3.6bn, and 12 closing in 2011 on $3.5bn in commitments.

Colony Investors VIII was the largest fund managed by a firm based in California to close in the past 10 years, closing in 2007 after securing $4bn in commitments from investors. The firm has managed 11 private real estate funds that have closed in the last decade, raising an a total of $10.4bn. Another major firm headquartered in California is CBRE Global Investors, which has raised $10.3bn from 17 vehicles in the past 10 years. Shorenstein Properties is another firm that has raised significant amounts, securing $5.1bn in commitments from four vehicles in the past decade.

There are currently 51 private real estate funds in market being raised by firms headquartered in California, seeking to raise an aggregate $16.7bn. The largest of these funds is CIM VI: Urban REIT, which is seeking to raise $2bn. The core and core-plus vehicle will invest in substantially stabilized real estate and real estate-related assets located in urban areas where the firm has already qualified for investment. Another large fund currently in market is the $1bn OCM Real Estate Opportunities Fund V, which is managed by Oaktree Capital Management.

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