Preferences and Future Plans of US-Based Private Real Estate Investors – January 2016

by Evan Barker

  • 08 Jan 2016
  • RE

Preqin’s Real Estate Online service currently tracks over 2,000 US-based private real estate investors that collectively hold over $22tn in assets under management. As shown in the chart below, foundations make up a quarter of US-based private real estate investors, followed by private sector pension funds (19%), public pension funds (19%) and endowment plans (18%).

These US-based investors have a preference for higher risk opportunistic (68%) and value added strategies (61%), while less than half maintain a preference for core (40%), debt (37%) and distressed (29%) fund strategies. There is a strong domestic bias for US-based institutions when targeting private real estate funds; 98% have a preference for investing in North America-focused funds, compared to 37% and 29% that state a preference for Europe- and Asia-focused vehicles respectively.

Eighty US-based real estate investors have stated that they will commit capital to private real estate funds over the next 12 months. North America will remain the focus for half of these active investors, with a fifth concentrating on private real estate funds investing on a global scale. Europe is preferred by 18% of active US-based investors, while only 10% will look to Asia-focused funds.

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