The Growth in Asian Private Equity Real Estate Fundraising

by Andrew Herman

  • 10 Dec 2010
  • RE

Prior to 2004, fundraising by Asia-focused private equity funds had been somewhat limited, with only a handful of funds reaching final closes. 2004 marked the beginning of significant growth in fundraising for Asia-focused funds, with 15 funds reaching a final close in the year having raised an aggregate $3.3 billion. The annual aggregate fundraising total peaked in 2008, with $26.9 billion raised by 43 funds.

2008 also represented the most significant year for Asia-focused fundraising as a proportion of the global total. The total capital raised by Asia-focused funds that closed during the year accounted for 19.4% of the global total raised by all private equity real estate funds worldwide, up from 8.5% in 2004.

The economic downturn had an adverse affect on fundraising globally, as an increasingly cautious investor community became less willing to commit to funds. Asian fundraising was particularly affected by the economic downturn and in 2009, 16 funds raised an aggregate $5.2 billion - the lowest amount of capital raised since 2004. Asian fundraising is still struggling to recover from the post-2008 decline, with Asian funds closed so far in 2010 accounting for just 8.8% of the global total.

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