Research Briefing | Apr 19, 2024

Global Private equity real estate fund maturities spur asset sales

The private equity real estate industry has expanded significantly, achieving a global invested assets under management of $1.2tn. This showcases substantial growth from a decade ago. The growth in AUM will also lead to a large pipeline of fund maturities over the next few years.

What you will learn:

  • We expect the significant increases in fund maturities, spurred by capital raised over the past decade, to exert upward pressure on the rate of asset disposals as the funds approach the end of their lifecycles.
  • Illiquidity in the market and a lack of price discovery have also caused a dearth of asset sales from PERE funds over the past two years. We now see a backlog of at least $200bn in assets that are in extension periods and will need to be sold down over the coming few years.
  • Heightened trading activity from PERE funds will likely impact the CRE markets in numerous ways. This will allow investors seeking to deploy capital to specific markets and strategies to source product from these funds, and pricing may also be affected if heightened selling pressure is not offset by additional growth in the PERE industry.
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