The private real estate industry has experienced significant growth and evolution. PERE's inaugural list of the top 200 private real estate firms showcases the industry's expanding asset class and the increasingly competitive marketplace.
A Broadening Asset Class
In the 1990s, a few New York investment banks initiated the institutionalization of the real estate asset class. Since then, capital raising in this industry has become more diverse and extensive in terms of sectors, geographies, and strategies. The competition among firms has also intensified. Interestingly, some firms that were previously in the top 100 list have slipped into the new second tier, even though they raised more capital than the previous year.
The Maturation of the Private Real Estate Industry
Since its launch in 2005, PERE has witnessed the dramatic maturation of the private real estate industry. Back in 2008, the minimum threshold for the PERE 30 ranking was $2.26 billion. Fast forward to this year, the PERE 100 ranking, which is more than three times the size of the original, has a minimum threshold of $1.86 billion.
Notable Firms in the Second 100 List
The second 100 list features several recognizable names. Established players like JPMorgan Asset Management and PineBridge Benson Elliot are among the firms in this section. Additionally, multi-asset managers such as Barings, who have refocused their efforts on real estate, have also made it to the second tier.
Specialized Managers on the Rise
Specialist managers have seen significant success with their targeted approaches. Among the top five managers with the biggest increases in fundraising totals, four specialized in specific segments of the market. Bellco Capital, Cresset Partners, Dermody Properties, and Seavest Investment Group have demonstrated the effectiveness of their focused strategies.
Geographical Diversity
The second tier of the list comprises firms with headquarters in dynamic and fast-growing cities like Austin, Texas, and Hamburg, Germany. This shift highlights the fact that being located on Wall Street is no longer a prerequisite for making a significant impact in private real estate fundraising. The industry has become more geographically diverse, paving the way for new players to enter the market from unexpected locations.
The private real estate industry continues to evolve, offering diverse opportunities for investors. The PERE 200 ranking reflects the growth and transformation of this asset class, showcasing the dynamic nature of the market. Invest today and be part of the ever-expanding world of private real estate.