Monday, 22 December 2014
Last updated 18 hours ago
Aug 18 2011 | 12:07pm ET
Several prominent private equity funds are among the more than 400 raising real-estate funds this year, as the appetite for the asset class returns four years after the onset of the subprime mortgage crisis.
The Carlyle Group, Cerberus Capital Management, Colony Capital, Fortress Investment Group and Starwood Capital Group are all actively fundraising. All told, 441 p.e. firms are raising money, according to Prequin, twice as many as two years ago. And they’re seeking some three times as much—$150 million—as they did either last year or in 2009, and more than in 2007 and 2008.
Colony has raised about half of the $1 billion it seeks. Northwood Investors, Rockpoint Group and Starwood are even more ambitious: They plan to raise at least $2 billion each. And Brookfield Asset Management wants $4 billion, Bloomberg News reports.
All of them, however, pale in comparison to the Blackstone Group’s seventh real-estate fund, which has already raised $4 billion over four months with a $10 billion target.
With so many firms seeking so much money, many are offering lower fees or committing more proprietary capital. The biggest funds raised this year—those garnering $1 billion or more—have seen their average management fee drop to 1.33 from 1.5% three years ago.
Dec 1 2014 | 10:21am ET
As 2014 winds down, Northern Trust Hedge Fund Services executives took some time to share their outlook on trends facing the industry in 2015. Read more…
Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.