Private equity real estate fundraising slowed in the second quarter, as capital inflows normalized after an especially strong first quarter and end of 2017.
Together, 48 funds collected $23 billion during the quarter, research firm Preqin said, noting that the second-quarter figures could change by as much as 10% as new data becomes available. By comparison, 75 funds raised $38 billion in the first quarter.
"With such a flurry of fundraising in the previous six months, it is perhaps not surprising that Q2 saw lower fundraising totals," Oliver Senchal, head of the firm's real estate products, said in a report. "However, it was by no means a bad quarter so much as it was a return to more typical levels."
Value-added and opportunistic funds remained popular, with 23 value-added funds garnering $11 billion and 10 opportunistic vehicles collecting $3.7 billion. Only six core and core-plus vehicles closed, having raised just $1.4 billion.
North America-focused funds raised the most capital, at $15 billion. Europe-focused funds raised $6 billion and Asia-directed funds collected $1.7 billion.
Landmark Real Estate Fund VIII, a secondary vehicle, was the largest fund that closed during the second quarter and the largest of its kind ever closed.
Dry powder in the sector rose to $290 billion as of the end of the first half, up from $249 billion at the close of 2017.