Many firms now offer their institutional clients opportunities to gain real asset exposure, but through debt instruments rather than the more traditional route of equity – thus limiting downsides while still providing an attractive yield.
Funds that invest wholly or partially in real estate assets saw several years of steady growth from 2014 to 2017. Capital raised per year went from $27.4 billion to
$41.3 billion over the period, an increase of 50 percent. In 2018 numbers fell back from their peak to $29.6 billion, but this was in line with a broader contraction seen across all types of debt funds that year after a record-breaking glut of fundraising in 2017.