An examination of emerging managers in real estate highlights the difficulty that managers without an established track record face when getting their proverbial foot in the institutional door.
The largest funds closed in 2015 so far are (unsurprisingly) dominated by the largest managers in the asset class, Preqin data show. Blackstone Real Estate Partners VIII ($15.8 billion) is the largest, followed by Lone Star Real Estate Fund IV ($5.8 billion) and Starwood Global Opportunity Fund X ($5.6 billion). And names like GLP, Carlyle, AXA Investment Managers and TPG are among the firms raising the 10 largest funds raised so far.
Over the longer term, the total capital raised among emerging managers as a percentage of the overall total has steadily declined. It hit its peak in 2011 (at 37%), but so far this year that figure stands at only 16% as of Oct. 20, 2015.
Preqin defines emerging managers as first- or second-time fund managers.