The proportion of fund managers that meet, exceed or fall below their fundraising targets is a useful indicator to measure the level of success firms are having in garnering commitments from investors. Just over half of funds closed in 2010 failed to reach their initial fundraising targets. 20% raised between 75% and 99% of their original target, 18% raised 50-74% of their initial target, and 13% raised less than half of their original target.
Around 20% of funds completed fundraising having collected their target amount, while 29% exceeded their initial fundraising goals. Despite the poor levels of fundraising in 2010, fund managers have been more successful in achieving their fundraising targets than they were in 2009. 81% of funds failed to reach their target size in 2009, notably more than the number that fell short in 2010. This reveals that fund managers are beginning to grow accustomed to difficult fundraising conditions and are now setting lower, more realistic fundraising targets.
For more information on private equity real estate fundraising, click to see how Real Estate Online can assist you.