Opportunistic real estate fundraising continues despite distress in the global economy

Despite the credit crisis and faltering economic growth, opportunistic real estate investment managers continue to attract capital, with some 187 funds seeking to raise $155 billion (approx. €120 bln.) in the third quarter, according to research from real estate fund of funds manager Clerestory Capital Partners.

"Lots of real estate fund managers see potential once-in-a-lifetime investment opportunities coming," Clerestory principal and co-founder Tommy Brown commented.

However, Clerestory observes that capital-raising has slowed considerably in recent months: "Anecdotal evidence suggests it's only some well-established managers who have raised their target equity amounts quickly from existing investors. Many managers appear to have struggled to close a third or half of their anticipated equity raises, and some may become distressed targets themselves

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