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UK-Focused private equity real estate fundraising

by Sarah Unsworth

  • 13 May 2011
  • RE

Fundraising for UK-focused funds has remained fairly consistent over the past few years. An average $2.3 billion was raised annually between 2005 and 2010. The largest amount raised in the past five years was in 2007, when nine UK-focused funds raised an aggregate $2.6 billion. The aggregate capital raised dropped the following year, with an aggregate $2 billion raised by nine and ten UK-focused funds in 2009 and 2010 respectively.  So far this year, one UK-focused fund has closed, raising nearly $200 million.

Of the 27 funds currently raising capital, 25 are managed by firms located in the UK. The remaining two firms are based in the US. Of the 10 firms that have raised the most capital for UK-focused funds in the last 10 years, eight are based in the UK and together raised $7.3 billion. Highcross Strategic Advisors raised the most capital for UK-focused funds in the past 10 years, raising an aggregate $1.4 billion. The two US based firms have raised $1.4 billion in the past 10 years, with CB Richard Ellis raising $800 million and LaSalle Investment Management raising $600 million.

Offices are the most popular property type targeted by UK-focused funds, with nearly half (48%) of funds currently raising capital planning to invest in them. Retail and industrial properties are the next most popular property types, with 33% and 22% of funds planning to invest in them respectively. Mixed use and warehouse/distribution properties are also fairly popular, 15% and 11% of funds investing in these property types.

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