Chart of the week: Dominance of largest firms on real estate debt funds in market

 Funds in market raised by the ten largest real estate debt fund managers account for 27 percent of total capital targeted

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Real Estate debt funds in market are targeting $45.39 billion globally as at Q1 2015. As based on assets under management, the ten largest real estate debt firms are targeting 27 percent of this capital. The largest firms are seeking to raise $12.12 billion from ten funds, whilst the other 92 firms with real estate debt funds in market are looking to gather $33.27 billion of investor capital from 100 funds.

The two largest funds being raised by the top ten firms are Senior European Loan Fund II managed by AEW Global, and CRE Senior 9 managed by AXA Real Estate. Both funds are European focused senior debt funds, targeting $3.32 billion and $2.77 billion respectively. However, the largest real estate debt fund currently in market is managed by Lone Star Funds – a firm outside of the ten largest managers as classified by assets under management. Lone Star Real Estate Fund IV is a global distressed debt vehicle seeking to raise $5 billion.

In Q1 2015, the largest real estate debt fund to hold a final close was Siguler Guff Distressed Real Estate Opportunities Fund II. The global distressed debt acquisition fund gathered $877 million of the $3.32 billion raised globally. With five of the ten largest firms currently targeting between $1 billion and $3.32 billion, real estate debt fundraising looks set to gather pace throughout 2015.