Fundraising by US-based Private Equity Real Estate Fund Managers

by Andrew Herman

  • 11 Jun 2010
  • RE

US-based real estate firms are highly significant within the private equity real estate industry, with 52% of funds in market managed by firms headquartered in the US. Fundraising by US firms was turbulent in the years 2000-2003, but the market showed signs of improvement in 2004 when 89 vehicles reached final closes, raising an aggregate $28 billion. 2005-2007 was a period of consistent growth in terms of fundraising by US firms, with over 130 funds closing in all three years. 2008 was the most successful year for US-based fund managers; 142 funds reached final closes, garnering commitments of $97.9 billion. The economic downturn meant only 76 funds closed in 2009, raising just $33.9 billion of capital.

There are currently 225 funds in market being managed by US firms, and these vehicles are seeking to raise an aggregate $79.6 billion. The vast majority (88%) have a primary focus on investment opportunities in North America. 8% of vehicles have a primary focus on Asia and Rest of World, with Europe the focus of the remaining 4%.

Firms headquartered in New York are responsible for a significant proportion of the capital raised by US-based fund managers in the past ten years. During this time, 130 vehicles being managed by firms based in New York have raised commitments of $199.3 billion. California and Texas are also notable examples of where significant fundraising activity has occurred; $67.2 billion and $48.5 billion has been raised by firms from these states respectively.

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