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North America-Focused Private Real Estate Funds in Market - May 2016

by Brian Chung

  • 19 May 2016
  • RE

Preqin’s Real Estate Online currently tracks 519 private real estate funds currently in market. Of these, 296 are focused on investment in North America and are collectively targeting $89bn in institutional capital commitments, representing 51% of total capital targeted by private real estate funds. This is an increase on the 242 North America-focused real estate funds in market last year, although these funds were seeking a similar amount of capital ($90bn).

As illustrated in the chart above, value added and opportunistic funds are the most prevalent strategies for North America-focused funds in market; together they represent 70% of North America-focused funds in market and 63% of the aggregate capital targeted. However, this proportion represents a reduction from May 2015, when value added and opportunistic funds constituted three-quarters of both the number of funds in market and aggregate capital targeted.

Fifty-three percent of North America-focused real estate funds in market target a diversified range of properties, while residential-specific funds represent 23% of the North America-focused funds in market. Niche funds, targeting senior housing, student housing, self-storage and others, account for just 6% of funds currently in market.

The majority (57%) of North America-focused real estate funds in market have been raising capital for over a year; approximately one quarter (26%) have been on the road for over two years. Of the funds in market that have held at least one interim close, 69% have been raising capital for more than a year and 30% for over two years.

Capri Apartment Fund IV (CAF IV) is one of the largest North America-focused private real estate funds currently in market. The fund is seeking $1.5bn in institutional capital for investment in apartment, mixed-use and multi-family property types throughout strategic US submarkets in urban gateway cities. 

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