fundraising

In the second of a two-part review of 2020, we examine how real estate lenders continued to do business, and raise fresh capital, amid the uncertainty created by covid-19.

The London-based manager, which has begun investing its sixth and seventh credit vehicles, says covid-19 has forced sponsors to adapt their strategies.

Though new relationships are still on hold throughout much of the world, many kinds of investors are still finding ways to grow their real estate exposure.

Following the €435m first close of its latest credit vehicle, the manager’s debt experts discuss fundraising in the time of covid-19.

The wall of capital will likely mean lower returns for property credit strategies. But that has not deterred institutional capital from piling in, as this record-breaking close will attest.

Investors committed around $5bn of capital to Blackstone Real Estate Debt Strategies IV after the end of Q1 2020.

The firm had more than $20bn of inflows in Q2 2020, which includes significant capital raised for the Blackstone Real Estate Debt Strategies IV.

The follow up to KKR’s 2017 fund will continue to focus on junior tranches of commercial mortgages.

While our data show global real estate debt fundraising peaked in 2017, sentiment among institutional investors suggests the asset class is not out of steam.

Sister title PERE’s research shows a slowdown in real estate debt fundraising since a post-global financial crisis peak in 2017.