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Connecticut-Based Real Estate Fund Managers

by Jonathan Ma

  • 24 Feb 2012
  • RE

There are currently 32 real estate fund managers headquartered in Connecticut and between them they are marketing 15 funds, targeting an aggregate $10bn. Over the last five years, firms based in Connecticut have closed 27 funds, raising a total of $23.3bn.

Mirroring trends seen across the real estate industry, the financial crisis has affected fundraising by these firms considerably. In 2007 10 Connecticut-headquartered funds raised a total of $4.2bn and in 2009 nine funds closed on an aggregate $4.3bn; however, in 2009 just three funds successfully closed, raising a total of just $1bn from investors. There was an improvement in 2010 when three funds closed, raising a total of $2.8bn, but this was followed by a difficult 2011 when two funds raised an aggregate $985m.

As of February 2012, the largest fund managed by a Connecticut-based firm on the road is Starwood Distressed Opportunity Fund IX. Managed by Starwood Capital Group, the fund is looking to raise $2.5bn with a debt, distressed and opportunistic focus. Starwood Capital Group has also managed the largest fund to close in Connecticut over the last five years. In April 2010, Starwood Global Opportunity Fund VIII closed at a value of $1.8bn. The fund has a global focus with a distressed and opportunistic strategy targeting a diversified range of properties.

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