Chart of the Week: North American Focused Real Estate Debt Funds

 Increasing fundraising levels from 2011 to 2013 drop off in 2014 for North American real estate debt funds


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From 2011 to 2013, the total capital raised for private real estate debt funds investing into North America increased year on year from $2.83 billion to $8.67 billion. Yet in 2014 there was a 48 percent decrease in total capital raised from the previous year, with $4.51 billion gathered from investors.

In 2013, the two largest funds closed were OHA Newbury Partners and Fortress MSR Opportunities Fund II, which both raised over $1 billion. The Blackstone Group and KSL Capital Partners were also amongst the fund managers raising North American real estate debt funds in 2013. With fund sizes reaching the billions in this year and big names busy investing the capital raised from these funds in the following year, this may offer an explanation for the drop in fundraising levels in 2014.

Despite a slow start to 2015, with only $540 million raised for funds to date, $13.7 billion of capital is currently being targeted by funds in market. If a number of these funds reach a final close this year, it is possible that the total capital raised for funds in 2015 will match or even surpass the fundraising levels reached in 2014.