Commercial real estate debt funds saw a strong first quarter, making up 39 percent of all new real estate private equity funds in the market in Q1 2022, according to Real Estate Capital USA data. That translates to eight funds worth $7.3 billion.
The increase comes after a lackluster 2021 in which debt funds made up only 20 percent of new funds raised, falling behind opportunistic and value-added strategies, which made up 29 percent and 34 percent, respectively.
Debt funds made up just 16 percent of the total capital raised in 2020, falling from 22 percent in 2019 and 27 percent in 2018.
Major closings in the first quarter included a roughly $2 billion offering from Madison Realty Capital and an undisclosed fund from Silverstein Properties, Silverstein Capital Partners Fund. Pretium Partners also closed a $1.5 billion debt fund, with Related Companies raising $750 million for its Related Real Estate Debt Fund. Finally, Angel Oak Capital Advisors raised an undisclosed amount of capital for Angel Oak Real Estate Investment Fund III.