Private real estate funds raised an aggregate $39 billion in investor capital in the six months ended Sept. 30, up 56% from the same time period last year, according to Preqin.
In the third quarter alone, 31 funds reached a final close with a combined $18 billion in capital commitments, compared to 44 fund closings with $13 billion in commitments in the third quarter of 2012. About $46 billion has been raised year-to-date through the third quarter, compared to $38 billion in the same period last year.
Brookfield Strategic Real Estate Partners, managed by Brookfield Asset Management, had the largest close in the quarter at $4.4 billion, followed by Blackstone Real Estate Debt Strategies II, with $3.5 billion. Five funds closed with more than $1 billion in commitments.
The average time to reach a final close decreased for the first time since 2010, taking 18.5 months this year vs. 19.8 months in 2012.
To start the fourth quarter, there are 448 closed-end real estate funds targeting an aggregate $159 billion in commitments. At the start of the third quarter, there were 446 funds targeting $168 billion.