Real Estate Private Equity Capital
Private Equity Real Estate Funds Can't Raise Capital
Fundraising by private equity firms focused in real estate has hit a 5-year low in the second quarter of 2009. The decline reflects nervous investors worrying that real estate values will wii continue to slide. Sixteen funds investing in real estate raised just $8.9 billion, the lowest since the Q3 2004. Alternative asset research firm Preqin concluded, "With many investors still unable to commit new capital, and with other investors more cautious towards the market following significant write-downs in value for existing investments, fund-raising will remain an extremely challenging task in 2009."
To read more about Private Equity Real Estate please see Private Equity Real Estate Investment.Fund-raisers have also lowered their targets by $28 billion over the past three months, and in some cases have shelved or abandoned their funds altogether. So far this year, 36 real estate funds have been abandoned or put on hold, compared with 25 funds in all of 2008, the report said.
Funds focused on Europe represented the biggest group in terms of value raised, with five funds raising a total of $5.3 billion. That's down from 12 funds and $9.2 billion a year earlier. About 3.1 billion euros ($4.32 billion) of that was attributed to the Blackstone Real Estate Partners Europe III, the largest fund to close so far this year, Preqin said. Nine funds focused on the United States raised $3.2 billion, paling in comparison to the 31 funds that raised $17.5 billion in the 2008 second quarter.
For a list of Private Equity Real Estate firms please see Largest Private Equity Real Estate Firms
Tags: private equity real estate firms, private equity real estate, private equity real estate funds, private equity real estate investments, private equity real estate management, real estate buyout funds
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