Like all risk assets, private equity in real estate funds currently find themselves caught between two competing forces -
The medium to long attractions (which clearly indicate potential for growth), balanced by the short-term flight to safety and capital preservation attitude.
The flight to safety is prevailing right now with all of the uncertainties in the world, but future appetite for these funds look good.
I would say that the fundraising environment is certainly difficult, but is it any more than recent times?
When cash is plentiful people deploy it often times for the wrong reason and when capital is scarce – investors need it to capture opportunities that arise.
