Preqin Quarterly Update: Real Estate, Q1 2017
Fundraising for private real estate slowed in Q1 2017 compared with recent quarters, with just 38 funds reaching a final close, raising an aggregate $16bn. Despite fund managers holding record levels of dry powder, deal activity has fallen in comparison with recent quarters. The number of completed private equity real estate deals was around a third lower, with 568 deals completed in Q1 2017 compared with 853 in Q4 2016, while aggregate deal value was also lower at $38bn compared with $57bn in Q4 2016. Despite some slowdown in these areas, private real estate continues to perform strongly for investors, with annualized returns of 14.9% for the three years to June 2016.