Texas-Headquartered Private Equity Real Estate fund Managers

by Sarah Unsworth

  • 03 Jun 2011
  • RE

There are currently 59 private equity real estate fund managers headquartered in Texas. Over the past 10 years these firms have raised an aggregate $53bn through real estate funds. The best year for fundraising for Texas-based firms was 2008, when 18 funds closed with commitments of $16.5bn in equity and similarly 2005 saw 10 funds closed having raised $10.2 billion. Since 2008 however, just eight funds have held final closes, raising $1.2bn. While this is a significant decrease since 2008, the figure may be misleading as major Texas-based firms, such as Lone Star Funds and Invesco Real Estate, have not had many funds holding final closes in this period. For example, of the 19 Invesco Real Estate funds to close in the past 10 years, just two closed 2009-2010. No vehicles managed by Lone Star Funds closed during this time; however the firm is expected to hold final closes for Lone Star Real Estate Fund II and Lone Star Fund VII in the coming months.

Some of the largest Texas-based firms are the previously mentioned Lone Star Funds, who have raised $23.3bn in the past 10 years for eight funds and Invesco Real Estate, which has raised 19 funds with $6.3bn in commitments from investors. Other significant firms based in the state include Hines, which has raised 17 closed-end funds with $5.8bn in commitments. Hines manages a series of funds investing in Europe and North and South America, with some exposure to Asia, and has broadly diversified real estate holdings. Another prominent Texas-based manager is Rockpoint Group, which has attracted $6.3bn in commitments for six funds. Rockpoint Group invests in Asia, North America and Europe and seeks exposure to a range of real estate property types.

In total there are currently 39 private equity real estate funds in market managed by Texas-based firms.

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