Commercial real estate debt strategies proved popular with institutional investors in the third quarter, with about 26 percent of all capital raised during the first nine months of the year allocated to the sector.
About $28 billion was raised for debt strategies through the end of Q3, according to data from Real Estate Capital USA. By comparison, there was about $33 billion raised for debt strategies in 2021 and about $30 billion in 2020, with a high watermark of roughly $45 billion in 2017.
The largest fund closes through the end of the third quarter came from Bridge Investment Group, which raised $2.9 billion for Bridge Debt Strategies Fund IV against a target of $1.5 billion. Madison Realty Capital raised $2.08 billion for Madison Realty Capital Debt Fund V, surpassing its target of $1.75 billion.
Finally, Kayne Anderson also surpassed its target for Kayne Anderson Real Estate Debt Fund IV, raising $1.88 billion. This compared with a target of $1.5 billion.