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US-Headquartered Private Equity Real Estate Fund Managers - February 2012

by Carla Henry

  • 10 Feb 2012
  • RE

As of February 2012, there are 274 private equity real estate funds on the road managed by US-headquartered firms, seeking to raise an aggregate $104.5bn from investors. Of these funds 239 are North America-focused and have a target of $85.1bn, whereas 18 are targeting investments in Europe and are seeking a total of $11.2bn in capital. The remaining 17 funds are focused on properties in Asia and Rest of World and targeting $8.2bn from investors.

Of the funds on the road managed by US-headquartered firms, 142 funds are diversified funds targeting $63.7bn. 38 funds are primarily focused on residential property are targeting $7.5bn in capital from investors. Funds primarily focused on office properties are seeking $7.3bn in commitments, while 14 funds focusing on retail properties are seeking $2.8bn in capital. There are currently nine funds focused on hotels, looking to garner $2.8bn.

Over the past 10 years a total of 863 funds managed by US-headquartered fund managers have closed, attracting a total of $424.3bn in commitments. New York-headquartered firms have raised the most capital over the past 10 years, as demonstrated by 180 firms raising an aggregate $211.6bn. California-based firms follow closely behind, with a total of 143 securing a total of $81.6bn in capital from investors. Firms headquartered in Texas have raised a total of $53.8bn in capital from investors, compared to the $2.4bn raised by 28 firms based in Florida.

The years between 2005 and 2008 saw the highest amount of capital raised for US-based fund managers with a total of 646 funds raising a total of $332bn during this period. In 2005, 144 funds closed raising an aggregate $58bn in capital, rising to $101bn from 164 funds in 2008. Following the peak in 2008, the aggregate amount raised by firms based in the US declined, with 103 funds raising an aggregate $36bn in 2009 and to 73 funds raising $33bn in 2011.

The largest funds currently on the road managed by US-headquartered firms include Blackstone Real Estate Partners VII, which is targeting $10bn for opportunistic investments throughout the US and Canada. Elsewhere, Rockpoint Real Estate Fund IV is targeting $2.5bn in order to invest in distressed properties located in the US, Europe and Asia. Walton Street Real Estate Fund VII is seeking $2bn in capital to invest in value added and/or destabilized properties focusing on the US property market. It is targeting investments in a range of property types, such as hotel, offices, and retail, industrial and multi-family assets.

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