Ahead of the publication of the EisnerAmper 2019 Private Equity Real Estate Market Outlook in March 2019, this blog looks at the fundraising challenges facing the real estate industry. This contribution is provided by Lisa Knee, Todd Hankin and Maureen Blair from EisnerAmper.

October was undoubtedly a tough month for hedge funds: the Preqin All-Strategies Hedge Fund benchmark returned -2.52% for the month, the worst monthly return since January 2016 (-2.81%). This can be attributed to the sharpest one-month decline of global equity markets since May 2012, in which the S&…

“[An illiquid asset] is a decent asset to have and protect against short-term volatility,” said an Australian superannuation fund. This is one of the key reasons why Australian superannuation funds invest in alternatives. Preqin data shows that a near-majority (80%) of such institutions seek to allo…

A short while on from the Global Financial Crisis, which wiped out half of the hedge fund industry’s total assets, swathes of new investors in search of diversification and downside protection made their first investments in hedge funds, and those that made significant withdrawals during the Crisis …

In 2011, real estate industry assets under management surpassed $500bn for the first time, and reached a post-crisis fundraising record in 2015. As at the end of 2017, total assets stand at $0.8tn and real estate is the third largest asset class in alternatives, behind hedge funds and private equity…

With their increasing sophistication, Korean LPs continue to expand their overseas alternatives allocations. The growth of investors’ overseas alternatives allocations is outstripping that of their domestic allocations, fuelled by limited opportunities onshore and increased familiarity with for…

Although hedge funds recorded outflows ($4.6bn) for a second consecutive quarter in Q3 2018, strong performance counteracted these capital withdrawals to grow industry AUM to $3.62tn, marking a 1.1% increase since the end of 2017. Industry outflows in Q3 2018 were predominately driven by macro stra…

The performance of private vehicles since the financial crisis has been a key driver of the growth of the industry. For private capital funds of vintage 2008 and onwards, the net IRRs since inception have, on average, exceeded 10% (with the exception of natural resources strategies). This consisten…

Over three-quarters (76%) of real estate investors that are planning new commitments in the next 12 months will target core funds, up notably from 60% in Q3 2017. Sixty-seven percent of investors will commit to value-added funds, while 66% will target opportunistic vehicles. As seen in the chart be…

Over half (57%) of the fund searches issued by hedge fund investors in Q3 2017 came from those based in North America, up from 44% in Q2 2018. Europe-based investors accounted for almost a third (30%) of searches issued. The most sought-after strategy among investors in the next 12 months is long/s…

The alternative assets industry is set to expand across all asset classes over the next five years. The levels of growth expected within the asset classes understandably vary, with the smaller asset classes set for sharper growth, while the more established markets are expected to continue to attrac…

In Q3 2018, 79 new hedge funds were established globally, the majority (81%) of which are single-manager funds. Following two successive quarters of contributing a healthy 6% of total launch activity, funds of hedge funds represented only 1% of launches in Q3 2018. Europe accounted for 39% of fund l…

This foreword is from The Future of Alternatives, Preqin’s crystal ball assessing the likely size, shape and make-up of the global alternative assets industry (meaning private capital plus hedge funds) in 2023. What will our industry look like in five years’ time? First, it will be significantly la…

Following the Global Financial Crisis, real estate has consistently been ranked as one of the best performing asset classes within the alternatives industry: in recent years, fund managers have returned significantly more capital to their LPs than they have called up each year. This consistent movem…

On the back of the industry’s slowest start to a year in the past 10 years, performance slowed yet further in Q3 2018, with the Preqin All-Strategies Hedge Fund benchmark returning 0.64% (Fig. 1). Despite a slowdown in performance from Q2, North America-focused hedge funds remain the best performing…

Private real estate debt funds have seen unprecedented levels of capital flow into the strategy in 2017 - 2018, and fund managers now have more dry powder available to deploy than ever before. 2017 was a record fundraising year, as 63 funds raised just over $32bn – a significant increase from the pr…

 The key theme for private capital fundraising in 2018 has been one of slowdown. However, this obscures the fact that the industry is still moving at breakneck speed. The first three quarters of 2018 saw funds raise an average of $192bn each quarter, more than in any previous year except 2017. While…

As the alternative assets industry continues to grow, Preqin is launching an initiative examining the Future of Alternatives. In conjunction with key industry participants, we take a five-year look into the future to see where the market will be, what changes fund managers are planning for and how i…