Preqin’s Real Estate Online service contains profiles for 333 institutional investors in the Southeast US currently committing capital to private real estate funds. These investors have aggregate assets under management (AUM) of more than $1.6tn and, on average, currently allocate 7% of total assets to real estate, below their average target allocation of 8%.
Public pension funds represent 26% of the private real estate investors based in this region, while foundations make up 23%, endowment plans 18% and private sector pension funds 14%. Insurance companies represent 5% of these investors, while banks and wealth managers account for 3% each. The remaining 8% of LPs are made up of family offices, asset managers, investment companies and other firm types. The largest proportion of these investors (28%) are located in Florida, followed by Virginia (19%) and Georgia (13%).
Preqin’s Real Estate Online service also provides information on Southeast US-based investors looking to invest in private real estate in the next 12 months, as well as funds raising capital meeting the preferences of investors. Axis Capital, a $15bn insurance company based in Georgia, will look to commit up to $200mn to opportunistic private real estate funds in the next 12 months. Also looking to invest is SignatureFD, a $2bn wealth manager based in Georgia that will look to commit to three or four private equity real estate funds with a particular focus on the US.
There are currently 238 funds raising capital primarily focusing on North American investments, with a combined target size of over $105bn. 179 of these funds in market follow higher-risk value added and opportunistic strategies, with 40 funds making debt and distressed investments, and lower-risk core and core-plus funds making up the remainder.