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Fund Manger Experience in the Private Equity Real Estate Universe

by Andrew Moylan

  • 01 Jul 2011
  • RE

Breaking down the private equity real estate firm universe by experience reveals that a lot of firms are still relatively inexperienced in terms of raising private equity real estate funds. Of all active private equity real estate firms, 19% are currently marketing their first fund. In comparison, just 5% of all private equity firms are looking to raise their first fund. 37% of real estate fund managers have raised one fund, 26% two or three funds, while 18% of firms are very experienced, having raised four or more private equity real estate funds.

When looking at firms that currently have funds in market, 46% are marketing their first fund, with a further 23% raising their second vehicle. Of all North American managers with funds in market, 45% are marketing their first fund, 24% are raising their second fund, while 32% have closed at least two funds previously. In comparison, 52% of European firms are marketing their first fund, with 11% having raised four or more previously. As might be expected due to the relative immaturity of the markets, no South America or Africa-based firms with a fund in market have closed more than one fund previously. Interestingly a significant proportion of Asia-based firms raising funds are relatively experienced, with 37% having closed at least two funds.

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