12 April 2018, Dublin - The 2018 Capital Raising Survey, published today by INREV, ANREV and NCREIF, reveals that 2017 saw a remarkable total of €152.3 billion in new capital raised globally by real estate investment managers – a 25.0% increase on 2016.
The results show clear investor confidence in the asset class, with equity being raised for 895 vehicles, up from 733 the previous year; and gains across all regions.
Vehicles with a European strategy again led the way, with €67.2 billion in capital raised, an increase from €56.6 billion in 2016. Of this total, European non-listed real estate funds enjoyed a record year, accounting for €35.1 billion.
However, big gains were made by vehicles with a global strategy, which made up over 10.4% of total capital – the equivalent of €15.8 billion. This was most strikingly the case in North America, where over half of all capital is intended to be deployed outside the home region.
Overall, North American vehicles gained significant ground this year, moving from €31.6 billion in 2016 to €43.9 billion; and vehicles in the Asia Pacific region increased the volume of capital raised from €21.7 billion to €24.9 billion.
Non-listed funds demonstrated an enduring appeal, with managers raising €83.9 billion for these vehicles, reflecting the trend identified in the Investment Intentions Survey 2017. A smaller, but still significant, €31.6 billion was raised for separate accounts (direct). Joint ventures and clubs were the only vehicles to not see uplifts in the amount of capital raised.
Interestingly, the survey revealed a shift in the balance of capital sources with more corporations and non-traditional investors, including high net worth individuals and families, increasing their share of capital raised. In turn, there was a proportional decrease in the percentage of capital coming from pension funds and insurance companies. Together, these typically dominant sources of capital accounted for 49.0% of the total.
‘By any standards, a 25% uplift is very impressive. The survey tells a positive story about the continuing appeal of real estate for an increasingly broad spread of investors. And the seemingly greater diversity of capital sources will no doubt be reassuring in terms of protecting the industry against any future systemic risk,’ commented Lonneke Löwik, INREV Chief Executive Officer.
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For further information, please contact:
Johlyn da Prato, johlyn.da.prato@inrev.org, +31(0)621397456
Justin St Clair-Charles, inrevteam@firstlightpr.com, +44 (0) 7769 644 059
Jack Rodgers, inrevteam@firstlightpr.com, +44 (0) 7580 427 746
Notes to Editors
About the Capital Raising Survey 2018
This is the twelfth year of the survey exploring fund managers’ capital raising activities. It is the fourth year running that the survey has been carried out on a global basis and has been conducted jointly by INREV in Europe, ANREV in Asia Pacific and NCREIF in the US.
The survey records details of capital raising activity subdivided by region, vehicle type and investment strategy. Data was collected at both manager and vehicle level, and figures in the report are quoted as at 31 December 2017, unless otherwise stated.
The 2018 survey compromised 175 participants, a record high number.
About INREV
INREV, the European Association for Investors in Non-Listed Real Estate Vehicles, was launched in May 2003 as a forum for investors and other participants in the growing non-listed real estate vehicles sector. The association represents and reflects an industry with a total value of €2.1 trillion and INREV members deliver €300 billion of stimulus to the real economy of Europe.
INREV has 416 members which include 75 of the largest institutional investors as well as 40 of the 50 largest real estate fund managers, plus banks and advisors across Europe and elsewhere.
The non-profit association is focused on increasing the transparency and accessibility of non-listed vehicles, promoting professionalism and best practice, and sharing knowledge. It is based in Amsterdam, the Netherlands.