The explosive growth of Private Equity and Real Estate (PERE)
funds since the 2008 global financial crisis (GFC) has been nothing
short of spectacular – and it's a trend that seems to
keep picking up speed, even when uncertainties from trade wars and
weakening economies loom overhead.
According to the Preqin database, a record amount of capital
(US$70 billion) was raised in the first half of 2018, and Q3
delivered the largest average fund size since 2015 at US$589
million. With 634 private real estate vehicles in the market in Q4
2018, the appetite for both value-added and opportunistic
investment strategies in the real estate sector does not seem to be
waning.
This trend is very much in line with the increased number of new
PERE fund set-ups which TMF Group has supported. We've found
the increased demand for investment and holding vehicles spans the
globe, with jurisdictions such as the Cayman Islands, Jersey,
Delaware, Singapore and Hong Kong preferred by limited