Brookfield Asset Management closed the largest North American debt-focused real estate private equity fund in 2021, raising $4 billion for Brookfield Real Estate Finance Fund IV.
Other big capital raisers included Torchlight Investors and Rialto Capital Management, which closed vehicles of around $2 billion each, while Berkshire Residential Investments raised a total of almost $2.5 billion for a pair of residential-focused strategies.
It is shaping up to be an equally strong year in 2022, with new strategies being marketed from Cerberus Capital Management, which is raising a targeted $4 billion fund. Players that include Basis investment Group, Harbor Group International and Medalist Partners are also raising funds with targets of $500 million or more.
By sector, multifamily and residential strategies make up about 18 percent of all capital raised since 2017. While the bulk of the capital raised for debt strategies has been for multi-sector vehicles, there have been a handful of retail and hospitality strategies.
Debt strategies made up about 20 percent of all capital raised in 2021, an increase from the 15 percent seen in 2020. Value-add and opportunistic strategies, making up 36 percent and 30 percent of all capital raised respectively, were the most active fundraising strategies last year.