Blog

Private Real Estate Investor Universe

by Clare Bowden

  • 26 Jan 2011
  • PE
  • RE

43% of investors in private real estate funds have total assets of between $1bn and $9.9bn. Indiana State Teachers’ Retirement Fund is one such investor that falls into this category. The public pension fund invests in the asset class solely through private real estate funds and its investments include WestRiver Real Estate Finance Fund and Fortress Investment Fund V.

22% of investors have assets under management of less than $500mn, and 16% have assets under management of between $10bn and $49.9bn. 8% of investors in private real estate funds have total assets of $50bn or more. Examples of such investors are Teacher Retirement System of Texas and Ohio Public Employees’ Retirement System, both of which are major investors in the asset class that will continue to make commitments in 2011.

In terms of real estate allocation, 32% of investors in private real estate funds have an allocation of between $100mn and $499mn to real estate. Fort Worth Employees’ Retirement Fund falls into this category. The US-based public pension fund invests in the asset class predominantly through private real estate funds and seeks to make two such commitments per year. It plans to increase its exposure to core vehicles in the future.

This group is closely followed by the 27% of investors with an allocation to the asset class of less than $50mn, and 14% with an allocation of between $1bn and $4.9bn. 5% of investors, such as APG - All Pensions Group, have an allocation of $5bn or more to real estate. The €343bn asset manager APG has a 7.5% allocation to real estate and 50% of its allocation is invested through private real estate funds. It is a global investor and has committed to funds with a wide range of strategies, including opportunistic, value added, fund of funds, debt and distressed. Commitments include Perella Weinberg Real Estate Fund I, AREIM 1 Fund and Hines European Development Fund II.

The information in this blog is taken from the newly released Preqin 2011 Global Real Estate Report , the industry's leading global reference guide, with commentary, stats, league tables and analysis on all areas of the private real estate universe. The Report is a must buy for all industry professionals looking to stay up to date with industry trends and is indispensible for reports and presentations.

Continue browsing industry reports, publications, conferences, blogs and more on Preqin Insights