Fundraising by Asia-Pacific Real Estate Managers

by Andrew Herman

  • 06 Aug 2010
  • RE

Asia-Pacific Real Estate fund managers have become more prominent within the private equity real estate industry in recent years. While fundraising by private equity real estate firms showed signs of significant growth in 2004 and 2005, Asia-Pacific firms raised just $1.6 billion and $2.4 billion respectively in these years. 2006 and 2007 represented years of growth for Asia-Pacific fundraising with over 30 funds closing in both years. Asia-Pacific fundraising peaked in 2008 when 26 funds closed, raising an aggregate $13.2 billion. The economic crisis had an adverse affect on fundraising in 2009, when 12 funds closed raising just $3.6 billion; the lowest figure since 2005.

There are currently 28 funds in market being raised by Asia-Pacific firms, and these vehicles are seeking to raise an aggregate $9.7 billion. Nearly half (49%) of the capital being sought will be raised by nine firms located in Hong Kong. Firms headquartered in India are seeking to raise over 20% of the overall capital being targeted.

Singapore-based Capitaland is the most prolific Asia-Pacific fundraiser in the last 10 years, having raised nearly $6 billion. KK DaVinci Advisors and BAML Real Estate Principal Investments are also notable examples of Asia-Pacific firms which have raised significant capital, having raised $4.4 billion and $2.7 billion respectively.

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