17 Funds hold a final close raising an aggregate $4.9 billion, the lowest quarterly total since Q3 2003
Private equity real estate funds worldwide raised just $4.9 billion in Q3 2009, the lowest fundraising total for a quarter since Q3 2003, when 17 funds raised $3.2 billion. The figures for Q3 also represent a significant fall from earlier in the year. Q3 2009 equates to 48% of the total raised in Q2 2009. The decline from the same quarter in 2008, however, is even more dramatic, Q3 2009 fundraising represents just 12% of the $40.5 billion which was raised in Q3 2008.
Figures B shows, the number and aggregate target of private equity real estate funds in market has been declining throughout 2009. The aggregate target of all funds in market has fallen by $21 billion over the course of Q3, as fund managers have reduced their fundraising targets in response to investor activity, or in some cases abandoned their fundraising efforts altogether. Preqin has identified 46 private equity real estate funds which have already been abandoned or put on hold in 2009 to date, compared with 27 in 2008.
D.C.