Tag Archive for investors

Dry Powder

According to industry sources, there is a total of $161 billion in dry powder ready to be deployed to private equity fund managers globally.

Funds with primary focus on North America have approximately $87 billion available.

Funds for opportunistic funds decreased in an effort to invest in core to core plus funds. Dry powder for debt investments has increased substantially.

Investors are scrubbing these potential investments harder than ever before. Surprisingly more and more investors are look at first time funds.

Finally, another encouraging sign for fund managers is that most investors are maintaining their target allocations and are not moving to the sidelines.

Rock and a Hard Place

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.