South America-Focused Real Estate Fundraising

by Andrew Moylan

  • 04 Mar 2011
  • RE

Fundraising by South America-focused real estate funds showed signs of growth in 2005, when five funds reached final closes, raising an aggregate $0.9 billion. The following year, almost double the amount of equity was garnered, as five funds raised an aggregate $1.7 billion. The most successful year for South American real estate fundraising was 2008, when $1.9 billion was raised by four funds. Despite the levels of capital raised globally dropping significantly in 2009, South American fundraising was relatively unaffected, as five funds garnered a combined $1.5 billion. The economic crisis did have an adverse affect on fundraising in 2010 however, with just $0.4 billion being raised.

There are currently 12 South America-focused real estate funds on the road, seeking to raise an aggregate $3.9 billion. Nearly 70% of the capital being sought by South American funds is by firms located in South America. The remaining real estate funds on the road are managed by firms located elsewhere, there are five such vehicles seeking to raise an aggregate $1.7 billion.

US-based Pramerica Real Estate Investors is the most prolific South America-focused real estate fundraiser in the past 10 years, having raised $1.5 billion. Prosperitas Investimentos and Brookfield Asset Management are also notable examples of firms which have garnered significant capital for South America-focused funds, having raised $1.2 billion and $0.8 billion respectively.

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