Pennsylvania-Headquartered Private Equity Real Estate Fund Managers in March 2012

by Farhaz Miah

  • 09 Mar 2012
  • RE

As of March 2012, there are 32 private equity real estate fund managers that are based in Pennsylvania. These firms have closed 36 private real estate funds, raising an aggregate $12.1bn in the past 10 years. The years between 2006 and 2009 saw the highest fundraising levels for Pennsylvania-based funds, with the highest amount of capital being raised in 2006 when six funds garnered total commitments of $4bn. In 2007, six funds attracted $1.1bn in capital, with this increasing to $1.4bn raised by three funds in 2008.

Four funds closed in 2009 raising $2.4bn, of which three incorporated debt strategies, suggesting that Pennsylvania-headquartered firms were responding to a challenging post-financial crisis market by raising vehicles geared towards an illiquid credit-starved environment. Fundraising declined in 2010 with four funds managing to secure just $300mn in commitments. Fundraising levels for Pennsylvania-based firms improved slightly in 2011, with $400mn of commitments garnered by two funds. A final close in 2012 has yet to be announced by a Pennsylvania-based real estate firm.

Lubert-Adler has been the most successful real estate firm located in Pennsylvania in terms of fundraising in the past 10 years, having raised an aggregate $4.9in private equity real estate fund commitments over this period. Lubert Adler Real Estate Fund VI, a debt and opportunistic-focused fund which closed on $2.2bn in Q3 2009 is the largest vehicle raised by the firm. Hunt Investment Management accumulated $1.6bn of private equity real estate commitments in the past 10 years, with the major contribution coming from its $655mn final close of the value added Hunt Commercial Realty Partners II vehicle in Q2 2006.  

There are currently six funds in market being raised by Pennsylvania-based firms, seeking $1bn in commitments. Exeter Industrial Value Fund II is the largest vehicle currently in market, with the fund targeting $425mn in commitments. The value added regional US-focused fund, which has already achieved a third close towards the beginning of Q4 2011 having raised $284mn, focuses on  acquiring, developing, re-developing, operating, leasing and selling industrial properties in major markets throughout the eastern, central, and southern United States.

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