Fundraising for private equity real estate worldwide declined in the first quarter of 2012, according to alternative asset research firm Preqin. Perhaps it is time for a gig in the PE gig in the real estate business, job seekers.
Twenty-six private equity real estate funds held final closings and raised $9.5 billion in the first quarter. This compares with 39 funds in the fourth quarter of 2011, which raised $15.8 billion.
Globally there are currrently 449 funds seeking a combined $166 billion, according to Preqin. That amount represents more than three times the total capital raised in 2011, cites the report.
However, Preqin suggests the number of funds holding interim closes and aggregate capital raised by such funds suggest momentum is building in the fundraising market, because managers are able to raise enough capital to hold closes and start making investments. Twenty-seven private equity real estate funds held interim closes in the first quarter of 2012 raising $7 billion towards their fundraising targets, according to Preqin.
Those funds also spent slightly more time in the market than those that closed in the fourth quarter of 2012, says Preqin. In the most recent quarter, funds closed spent an average of 18.1 months in the market. In the previous quarter, funds closed spent 17.3 months in the market.
Regionally, North American funds had the most success raising capital, Preqin found. Fifteen funds with a primary focus in North America raised a total of $6.3 billion. Seven European funds raised a total of $2 billion. Four funds that invest in Asia and the rest of the world raised a total of $1.2 billion.
This week’s job of the week is looking to make the most of opportunities in international real estate and is for a role at private equity firm Hamilton Bradshaw’s new London-based real estate business HB Real Estate.
Five tips in applying for such a role recommended by UK-based recruitment agency Private Equity Recruit include:
1. A good level of understanding of real estate markets – type and geography eg commercial, residential, leisure etc and where
2. Good financial modelling skills – and willingness to take ownership of the model – so that you take responsibility for everything that happens in respect of that project and how it affects the returns model
3. A good understanding of what type of role you want (i.e. do you want an investment role, an asset management role, or an investor relations role)
4. Good relationship-building skills – inside and outside the company
5. Ability to demonstrate sound commercial judgement – you must be able to give examples of how you have done this
6. Finally, for a senior role such as this one, a successful track record of investment and returns
Scroll down to find out more if you think you have what it takes to fill the position.
***Job of the Week***
Job Title: Property Investment Director Real Estate
Firm: Hamilton Bradshaw – HB Real Estate
Salary: 100,000 – 200,000 pounds ($161,463 – $322,917) per annum
Location: London, UK
Firm Description: Specialist private equity firm focused on investments in real estate ventures and property assets. The firm is chaired by James Caan, UK entrepreneur and former Dragon on the tv programme Dragon’s Den
Job Description (as cited via Webrecruit UK): This is an exciting opportunity for somebody who wants to be an integral part of the growth strategy and implementation of a new subsidiary business of an established private equity group. The current portfolio includes real estate investments and joint ventures. It is set to grow rapidly in 2012 in a range of real estate sectors both domestically and internationally, including new investments in both property assets and property businesses.
Working with the managing partner, as the property investment director, the role will consist of evaluating and conducting due diligence and structuring new joint venture and private equity deals in the real estate sector. The successful candidate will also represent Hamilton Bradshaw on the board of new JV companies.
Qualifications/Experience (as cited via Webrecruit UK):
The successful candidate must have experience within the real estate sector and at least 10 years’ transactional experience. The applicant must also have had exposure to a start-up and early stage business in the property sector, as part of the role will involve advising and adding value to a growing portfolio of property start-ups.
While not essential, a CIMA qualification would be beneficial.
To apply for the role please contact Webrecruit UK via the apply button shown on this link.
For more private equity job opportunities head over to the peHUB career center, co-hosted with eFinancialCareers.com.
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