Commitments to private real estate continue to surge through H1 2021
Public pensions committed $23.5 billion to real estate managers through the first half of 2021, a 35% year-over-year increase
Commitments to real estate managers by U.S.-based public pensions in H1 2021 increased significantly relative to the same period in 2020 and represent the strongest H1 fundraising performance since 2015 ($24.6B), according to data tracked by Ferguson Partners (“FP”). Per FP’s proprietary database, pensions committed $23.5 billion to managed real estate vehicles through the first half of 2021, compared to $17.5 billion last year and $21.5 billion in 2019. Moreover, the H1 2021 commitment volume to privately managed real estate vehicles outpaced the five-year H1 average of $19.6 billion by 20%, suggesting that investors regard real estate as a compelling investment opportunity as we emerge from the global pandemic. Given the strong performance to-date, it would not be surprising if 2021 matches or exceeds the previous high watermark year of 2018 ($49.6B in total).
To continue reading, download a PDF of the full Q2 2021 Fundraising Update.
For additional information, please contact Erin Green.