Fundraising by European (Excluding UK) Real Estate Managers

by Andrew Herman

  • 27 Aug 2010
  • RE

Fundraising by European (excluding UK) real estate fund managers showed noticeable signs of growth in 2003 and 2004 when totals of €1.4 billion and €1.6 billion were raised respectively. The biggest year in terms of growth for fundraising by European headquartered firms came in 2005, when 32 funds raised €4.5 billion. The following year 38 funds closed, raising an aggregate €6.7 billion. The most successful year for fundraising by European firms came in 2007, when 44 funds received commitments of €6.7 billion. The economic downturn had an adverse effect on fundraising and in 2009 just 15 funds closed, raising €2.8 billion.

There are currently 49 funds in market being managed by European-based firms; these vehicles are seeking to raise an aggregate €11.3 billion. A significant 91% of the capital being sought by European firms will be primarily targeting investments in properties located in Europe. The remaining funds on the road are primarily focused on investments in Asia and Rest of World, with seven such vehicles seeking to raise an aggregate €1 billion. There are no European firms currently in the market seeking to raise capital for funds that will primarily target investments in North America.

ING Real Estate Investment Management is the most prolific European-headquartered (excluding UK) fund manager in the last 10 years by capital raised for real estate funds, having raised €3.9 billion of equity. The Netherlands-based firm manages closed-ended and open-ended funds, as well as fund of funds vehicles. Other notable European fund managers include AEW Europe and AXA Real Estate Investment Managers, which have raised €3.5 billion and €2.4 billion respectively in the past decade.

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