Investor activity in private real estate picked up over the last 12 months, with 52% of institutions surveyed making commitments. However, activity continues to vary by institution size, with investors with greater assets under management considerably more likely to make commitments. Over the next year, larger investors are likely to continue dominating new allocations, with many small- to mid-size investors remaining wary of making new commitments.
In terms of capital, 29% of investors are intending to put more capital to work in the next 12 months than they did in the previous year, compared to just 18% which stated so six months ago; further positivity can be revealed through the fact that 63% of investors intend to invest in three or more funds, with 55% planning to commit $100mn or more.
Source : Preqin