The private real estate fundraising market remains competitive, with an alltime high of 492 funds being marketed as of January 2016, collectively targeting $174bn in institutional investor capital (Fig. 5.10). Fund managers will continue to fi nd it challenging to stand out from their peers in such a crowded market, despite strong institutional appetite for real estate exposure.
As demonstrated by strong fundraising for opportunistic and value added funds in 2015 (see pages 31 and 32), there is considerable investor appetite for exposure to opportunities further up the risk/return spectrum. As shown in Fig. 5.11, there are many opportunities available to investors, with value added and opportunistic funds representing approximately two-thirds of funds in market and total capital targeted. Value added funds are seeking the greatest amount of institutional capital, with 181 funds seeking $56bn, although many of the largest individual offerings follow primarily opportunistic or debt strategies. Core and core-plus funds are less numerous, with only 84 such vehicles in market, collectively targeting $24bn.
Source : Preqin