Private real estate fundraising ended 2019 on a sour note, with managers closing just $14.5 billion in the last three months of the year.
Following positive return performances in 2018, family office allocations to the strategy increased by 2.1 percentage points – more than any other asset class.
Given a family office’s access to long-dated capital, real estate investments seem like a good fit. But management fees continue to be an area of contention.
PERE’s review finds 2018 was the worst year for private real estate capital raising in the last seven.
Investment opportunities for real estate debt in the US appear to remain strong.