Private Equity Real Estate Funds at End of Investment Period Sitting on $70-$80 billion in Dry Powder
The boom in private equity real estate fundraising prior to Q4 2008 saw increasing amounts of capital committed to the asset class. However, following the global financial crisis and severe declines in property prices, the number of completed deals has fallen significantly. With a median investment period for real estate funds of three years, many fund managers are now approaching the end of their investment periods with large amounts of capital yet to be invested. For example, vintage 2007 funds have $67 billion in uncalled capital available for investment.