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The private equity real estate industry continued to grow in 2014, hitting an all-time high.
Preqin says the aggregate assets under management of closed-end private real estate funds reached US$742 billion ($872 billion) globally as of June 2014, an increase of US$50 billion since December 2013.
Total assets under management have increased by 63% since December 2010, with a large proportion of this growth accounted for by the increase in the value of real estate assets still being held by fund managers.
Some other key facts include:
- global private real estate dry powder (the amount of uncalled capital available for investment in real estate assets) stands at US$175 billion;
- US$138 billion of capital was distributed back to investors in private real estate funds in 2013, more than double the US$67 billion returned in 2012; and
- there has been a 153% increase in the amount of capital raised by Europe-focused funds closed in 2014 (January to November) compared to funds closed during the same period in 2013.
“2014 has seen a notable rise in the amount of assets managed by the private real estate industry,” says Andrew Moylan, Preqin’s head of real assets products. “The return of previously tied-up capital to investors may prove positive for private real estate fundraising in future months, as investors look to re-invest the capital in new real estate funds.”
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