Of the private real estate funds currently in market, there are 30 vehicles with a target size of at least $1bn, collectively targeting over $51.7bn. More than half of these funds (16) are primarily value added or opportunistic in strategy, and are targeting an aggregate $30.6bn, representing 59% of the collective target of funds targeting at least $1bn.
Half of these 30 funds in market are primarily targeting North America, and these North American funds have a collective target of $28.9bn, representing 56% of the total capital sought by the 30 funds. This is followed by Europe-focused vehicles, with nine vehicles focusing on this region targeting an aggregate $13.8bn (€10.4bn). The remaining six funds are focused on Asian markets, targeting an aggregate $9bn.
The four largest funds currently in market are Starwood Opportunity Fund X Global, Blackstone Real Estate Partners Asia, Oaktree Real Estate Opportunities Fund VII and Carlyle Realty Partners VII. Starwood Capital Group’s fund is targeting $4.5bn for global investment opportunities, and has achieved a first close, while Blackstone Group’s Asia-focused fund has already raised more than its $4bn target, but can raise up to its hard cap of $5bn. Oaktree Capital Management and Carlyle Group are each targeting $3.5bn for their global funds.
Of the vehicles closed in 2014 to date, nine funds had targeted at least $1bn in capital commitments, with an aggregate target of $23.6bn. All of these funds held a final close on at least $1bn, raising an aggregate of $24.7bn. The largest fund to have closed so far this year is Lone Star Fund IX, a global vehicle with a final close of $7.2bn.