US-Focused Private Real Estate Funds Closed in 2015 - August 2015

by Brian Chung

  • 10 Aug 2015
  • RE

Preqin’s Real Estate Online contains detailed information on the 47 primarily US-focused private real estate funds that reached a final close in 2015. These funds have secured an aggregate $42bn in capital commitments, accounting for approximately 59% of the total capital raised for closed-end private real estate this year.

As can be seen in the chart above, US-focused fundraising remains strong; the majority (70%) of US-focused private real estate funds have met or exceeded their fundraising expectations, representing an increase of approximately 10 percentage points compared with funds closed in 2014.

In terms of strategy, a large proportion of US-focused funds closed in 2015 so far have followed higher risk strategies; half utilized a value added approach and 21% followed opportunistic strategies. Funds investing in a diverse range of properties account for 53% of US-focused funds closed this year, with 17% targeting niche properties, displaying the appetite among investors for diversification within their real estate portfolios.

As institutional investor appetite for private real estate funds remains strong, US-focused real estate fund managers are continuing to raise significant amounts of capital in 2015. CIM Group raised its eighth real estate vehicle for $2.4bn in capital commitments. CIM Fund VIII will continue to implement its opportunistic strategy, targeting car parks, hotels, mixed-use, office, residential, retail and warehouse properties across densely populated, urban communities throughout the US. The largest US-focused niche fund in 2015 YTD is Kayne Anderson Real Estate Partners IV, a value added fund focusing on student housing properties, among other niche real estate assets. The fund raised $1bn, meeting its initial target fund size.

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