19 private equity real estate funds closed in Q3 2010, raising $8.7 billion. Since 2005 there have only been two quarters in which less capital was raised. Q3 2010 fundraising equates to just 21% of the capital raised in Q3 2008.
Funds primarily focused on North America raised the most capital in Q3, with 13 funds raising a total of $6.0 billion. Five Asia and Rest of World funds raised $1.9 billion, while just one fund with a primary focus on Europe closed, raising $0.8 billion. The aggregate target of funds in market has fallen steadily since Q1 2009, as managers have reduced fundraising targets or abandoned funds. The number of funds in market increased during Q3 2010, however, perhaps suggesting increased fund manager confidence in the prospects for fundraising in the coming months. There are currently 403 funds in market, targeting $132 billion in aggregate commitments.
Funds which have closed in 2010 to date have spent an average of 18.9 months in market, demonstrating how hard it has been for fund managers to secure commitments. In contrast, funds which closed in 2006 spent only 9.8 months in market on average.
Click for a full factsheet on private equity real estate fundraising in Q3 2010.