Sixteen real estate funds raised a total of $8.9 billion in the second quarter, the smallest amount in almost five years, according to data released today by Preqin.
The capital raised in the quarter ended June 30 was 44% less than the $16 billion raised in the first quarter and 76% below the $37 billion raised in the second quarter 2008. It's the lowest amount since the third quarter 2004 when 22 real estate funds raised $8 billion.
Much of the capital raised in the second quarter was for European funds, with five funds raising $5.3 billion, including the €3.1 billion ($4.3 billion) Blackstone Real Estate Partners Europe III, the largest fund to close so far this year.
Real estate managers abandoned fundraising for 36 funds, compared with 25 funds for all of 2008.
Also, the 378 funds being raised have an aggregate target of $199 billion, down from 390 funds that were targeting $227 billion three months ago. Nine U.S.-focused funds have raised $3.2 billion.
