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Private Equity Real Estate Fundraising by California-based firms

by Andrew Herman

  • 23 Jul 2010
  • RE

California is an important state for private equity real estate fund managers. The 106 managers located in the state have raised $67.4 billion in the last 10 years, making it the second most prolific state for private equity real estate fundraising, behind only New York. The most successful year in terms of fundraising by California-based firms was 2007, when 29 funds received aggregate commitments of $19.7 billion. The following year, 23 funds closed raising an aggregate $9.3 billion. Fundraising declined further in 2009, when 11 funds received $4.1 billion in aggregate commitments. The fall in fundraising by California-based firms is indicative of the private equity real estate market as a whole, with fund managers having difficulty in garnering investor commitments.

Notable firms located in California include Colony Capital, which has raised $10.6 billion for its private equity real estate funds in the past 10 years. This includes the $4 billion it raised for Colony Investors VIII, which invests in retail, residential, casinos and healthcare property located in North America, Europe and Asia. CB Richard Ellis Investors has raised $6.5 billion in the last 10 years; the firm manages value added and opportunistic funds, which also make investments in debt and distressed markets. Other Significant California-based fund managers include Shorenstein Properties and Rockwood Capital; these firms have raised an aggregate $4.5 billion and $3.5 billion respectively over the past 10 years.

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