Aggregate assets under management in the U.S. private real estate industry reached an all-time high at the end of 2012, according to a report from Preqin.
The overall assets under management totaled $335 billion as of Dec. 31, up 8% from the previous year, according to the Preqin's report, “U.S. Private Equity Real Estate Fund Management Industry.”
Total AUM as defined by Preqin is the sum of its unrealized value of portfolio assets, as well as its “dry powder,” or uncommitted capital.
The unrealized value of portfolio assets increased to $256 billion as of Dec. 31, up 20% the year before, while dry powder dropped to $79 billion, down 15.1%.
Dry powder is at its lowest point since the end of 2006, when fund managers had $70 billion. The decrease is attributed to an increase in investment activity, putting their significant capital reserves to work, the report said.
Final closings by U.S.-focused funds year-to-date as of Aug. 31 have totaled 64 funds, raising an aggregate $33 billion in equity in 2013. At the same point in 2012, 66 funds were closed but raised just more than $17 billion.
The capital distributed back to investors also increased to $36 billion in 2012, near the pre-crisis peak of $38 billion in 2007 after its nadir in 2009 at $13 billion.
The full report is available on Preqin's website.