The evolving landscape of private equity real estate

Favorable market conditions and increasing institutional demand for real estate exposure have fueled significant recent growth in private equity real estate (PERE) funds. The ability of PERE funds to raise capital has been consistently strong, with more than $100 billion secured in each of the past six years. With the growing demand for real assets suitable for private equity investment, and large amount of available capital, the annual number and total value of PERE deals have reached record highs for the past five years. As the industry matures, investors have received greater distributions and sought to re-invest capital in private real estate in search of the same public market outperformance.