LONDON (Reuters) – Private equity property funds could be set for another record year, having defied tough market conditions by raising $25 billion in the first quarter, research firm Private Equity Intelligence (Preqin) said on Thursday.
Preqin said the total amount raised globally in the first quarter was bettered only once last year — in the second quarter, just before the start of a global credit crunch — and left the market on track to break above $100 billion in 2008 for the first time.
“Investors view private equity real estate funds as a long term investment prospect, and despite credit conditions many are increasing their allocation to the asset class,” Preqin spokesman Ignatius Fogarty said in a statement.
Preqin said a third of 307 private equity real estate funds currently trying to raise capital had already reached their interim closings and were targeting an aggregate $53.8 billion.
(Reporting by William Kemble-Diaz; Editing by Rory Channing)