RE DEBT IN 8 SLIDES What's changed for real estate debt?
There's a shakeup at the top of the RED 50 Our second annual real estate debt fund manager ranking shows a new real estate debt fundraising champion. While Blackstone took the crown in our first list, number one this time is Europe ’ s AXA Investment Managers – Real Assets, with almost $20 billion raised. The RED 50 is based on the capital raised for debt issuance funds between 2015 and 2019. 2020 2019 AXA IM – Real Assets Blackstone PGIM Real Estate Cerberus Capital Management Intermediate Capital Group AllianceBernstein M&G Investments Goldman Sachs Merchant Banking Division Bridge Investment Group ACORE Capital PCCP Mack Real Estate Credit Strategies Oaktree Capital Management 0 2 4 6 8 10 12 14 16 18 20 Capital raised ($bn) Source: PERE
CLICK HERE But North America (and New York) still dominate for the full RED 50 With a record $157bn raised by the RED 50, the share accounted for by North American firms – particularly those ranking and profiles of top managers headquartered in New York – is sizable RED 50: New York-based firms All real estate debt fundraising, by manager HQ, 2015-19 raised 32% of the ranking's capital $156.9bn 100 Total capital raised for the RED 50 90 80 $3.1bn Europe 29% 70 Average capital raised 10% North 60 America Asia- 50 62.4% Paci fi c 14% Total capital 40 raised by North 15% 30 American firms Latin America 20 10 0 32% Source: PERE Source: PERE
CLICK HERE The 2017 fundraising peak hasn't been matched to see how fundraising in The decline in real estate debt capital raised has continued since a record-breaking 2017, although average fund sizes are Europe and Asia-Pacific is catching up holding up well to North America Real estate debt fundraising 2015-19 Average size of real estate debt funds that reached final close 45 90 600 40 80 500 35 70 Number of funds closed 30 60 400 Fund size ($m) Capital raised ($bn) 25 50 300 20 40 200 15 30 10 20 100 5 10 0 0 0 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 Capital raised ($bn) Number of funds closed Source: PERE Source: PERE
CLICK HERE ...and Blackstone's 2015 fund remains unsurpassed to read how strong No private real estate debt fund since Blackstone Real Estate Debt Strategies II's final close in July 2015 has been bigger institutional demand for risk plays into the hands of non-bank property lenders Top 10 funds closed January 1, 2015 to December 21, 2019 Manager HQ: US France Canada Source: PERE
CLICK HERE There are new frontiers on the horizon, though to learn where capital Investment in real estate debt can benefit as the coronavirus and late-cycle considerations prompt a turn to providers and managers are seeking fresh pockets lower-risk strategies of value US capital is looking to invest in Europe, where investors see better risk- adjusted returns because of higher pricing Todd Sammann, head of credit strategies, CBRE We have seen a proliferation of new funds in the US – 150 over the last three years and $100 billion-plus of capital allocated to credit Michael Kavanau, head of debt and structured Higher returns from development: the London Olympia redevelopment is being financed by a loan from Goldman Sachs finance for EMEA, JLL
...and funds in market are aiming high Debt vehicles in market are expected to attract almost $55bn, with North American funds accounting for approximately half of that Top 10 real estate debt funds in market by target size (January 1, 2020) Capital targeted by region 55 Region targeted: North America Europe Multi-regional 50 $4.92bn 45 $7.45bn 40 Capital targeted ($bn) 35 30 $14.96bn 25 20 15 10 5 0 $27.03bn Source: PERE
This report was compiled from data collected for PERE's Debt Report published in May 2020. James Linacre Special Projects Editor PERE james.l@peimedia.com Production: Adam Koppeser Design: Miriam Vysna
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