Private Real Estate Fund Managers – February 2013

by Karun Ahluwalia

  • 01 Feb 2013
  • RE

The 2013 Preqin Global Real Estate Report shows that there has been considerable growth in the number of private real estate fund managers that are active in recent years, despite the tough fundraising environment. Preqin tracks more than 1,600 private real estate firms, including managers of both closed- and open-ended funds, which between them manage over 3,800 vehicles. Globally, the private real estate industry employs an estimated 14,500 people.

The closed-end fund model is the model most widely used by private real estate fund managers. In terms of fund types managed, 83% of firms only manage closed-end funds, and 10% manage only open- or semi-open-ended funds. The remaining 8% are managers of both closed- and open/semi-open-ended funds.

North America remains the base for the majority of private real estate firms, accounting for 55% of managers. Europe is the second most significant region for such firms, with 29% headquartered in the region; this is a one percentage point increase from a year ago. Of the remaining firms, 8% are based in Asia-Pacific, and 3% are in each of the Middle East and Israel, and Australasia. The final 2% is made up of Africa- and Latin America-based private real estate firms.

New York and London are the two most important metropolitan areas for private real estate firms, with 183 and 171 firms respectively headquartered in these cities. Sixty-nine private real estate firms are headquartered in Los Angeles, less than half the number based in London. US cities account for six of the top 10 locations for headquarters of private real estate fund managers, and Sydney, Mumbai and Toronto make up the remainder.

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