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Fundraising by Canadian Real Estate Managers

by Farhaz Miah

  • 07 Jan 2011
  • RE

Fundraising by Canadian real estate fund managers exhibited noticeable signs of growth in 2006 when CAD 2.7 billion was raised by four funds. However, in 2007, although the number of funds closed increased to six, just CAD 1.2 billion of capital was raised. Only three funds were raised in 2008, raising CAD 0.9 billion. The number of funds closed in 2009 remained unchanged on the previous year and the amount of capital raised decreased slightly to CAD 0.7 billion. Three funds closed in 2010, raising CAD 6.4 billion, with Brookfield Asset Management’s Real Estate Turnaround Consortium accounting for the majority of capital raised. There are currently eight funds in market being managed by Canadian-based firms; these vehicles are seeking to raise an aggregate CAD 2.4 billion.

83% of all funds raised by Canada-based real estate fund managers between 2005 and 2010 primarily target North America, with the remaining 17% primarily targeting the rest of the world. However, the aggregate capital collected by funds primarily focused on regions outside North America (CAD 6.5 billion) exceeded that collected by North America-focused funds (CAD 6 billion) in this period.

Brookfield Asset Management is the most prolific Canada-based fund manager in the last 10 years by capital raised for real estate funds, having raised CAD 10.8 billion in commitments. The Toronto-based firm manages funds across the fund strategy spectrum, including the USD 5.6 billion Real Estate Turnaround Consortium, a global fund utilizing debt, distressed and opportunistic strategies. Other notable Canadian fund managers include KingSett Capital and Tricon Capital Group, which have raised CAD 1 billion and CAD 960 million respectively in the past decade.

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