Europe’s debt fundraising almost halves

Capital raised for real estate debt funds with a European focus fell to $5.74bn last year – down 46% from its 2017 high, Real Estate Capital data show.

Last year saw a downward trend in private real estate debt fundraising for Europe-focused vehicles, with a total of $5.74 billion raised, according to Real Estate Capital data, representing a 46 percent drop since the 2017 zenith. The tumble corresponds with a global fall in fundraising for property debt funds.

Our data reveal that 10 funds held a final close in 2018, with the largest being DRC UK Whole Loan Fund, closed in October 2017. After 10 months on the road, from fund launch to final close, the vehicle raised £700 million (€788.4 million) – surpassing its initial target size by £200 million.

The size of DRC’s latest UK-focused whole loan strategy is around half of 2017’s largest fund close, AXA Investment Managers – Real Assets’ Commercial Real Estate Senior 10 fund, which closed on €1.5 billion.

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