Private Debt Intelligence – 3/8/2021

IPE Real Assets –
Real Estate & Infrastructure Fundraising

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Chart II

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Real Estate Fundraising
Real estate fundraising activity started at a slow pace in 2021. So far in 2021 (as t 10th March 2021) just 34 funds have been closed raising $15bn. In terms of capital raised, Q1 2021 has registered the lowest figures since Q1 2013. However, the quarter has yet not finished, there are plenty of funds in market and numbers can still increase. From the ten largest real estate funds in market, they all target $2bn or more and six of them have already had an interim close. The two largest, Brookfield Strategic Real Estate Partners IV and Alliance Venture Collaborative QOZ Fund, targeting $18bn and $10bn respectively, are both focusing in North America to make investments in North America.

Infrastructure Fundraising
Infrastructure fundraising has continued to drop in 2021. So far in the year (as at 10th March 2021) 12 funds have been closed securing $12bn. However, these figures show that the average fund size is increasing, reaching $1bn. In comparison, Q1 2020 was a strong fundraising quarter with 24 funds closed and $39bn secured, numbers that will be difficult to reach again. Yet, there is a high amount of funds in market. From the top 10 funds in market, they all target $5bn or more. The three largest, EQT Infrastructure V, ISQ Global Infrastructure Fund III and KKR Global Infrastructure Investors IV are seeking for $14bn and $12bn respectively. The KKR fund has already held a third close, which may mean it will soon have a final close and will significantly increase fundraising figures.

(Past performance is no guarantee of future results.)

Contact: Maria Zapata
maria.zapata@preqin.com