Preqin Research Report Fig.

3:
Private Equity Real Estate Fundraising by
Q3 2010 Private Equity Real Estate Primary Geographic Focus, Q3 2010
Fundraising Update Source: Preqin
14 13
12
10
Fig. 1: Top Five Largest Real Estate Funds to Close in Q3 2010 8 6.0
6 5

Manager Fund 4 1.9

Fund Firm Strategy Size (mn) 2 1 0.8
Country Focus
0
Fortress Credit Fortress
Debt and North America Europe Asia and Rest of
Opportunities Investment 2,600 USD US Global
Distressed World
Fund II Group
No. of Funds Aggregate Capital Raised ($bn)
Core-Plus, Debt,
TA Realty TA Associates
Distressed and 1,700 USD US US
Associates IX Realty
Value Added
Debt, Distressed
Brockton Capital II Brockton Capital
and Opportunistic
496 GBP UK UK Fig. 4:
AG Asia Realty Angelo, Gordon Distressed and Private Equity Real Estate Funds on the
625 USD US Asia
Fund II & Co Opportunistic Road over Time, Q1 2007 - Q4 2010
AG Net Lease Angelo, Gordon
Value Added 550 USD US US Source: Preqin
Realty Fund II & Co 450 381 390 383 403
378 363 376 378
Source: Preqin 400
350
300 273
228 227
250 199 178
200 173
147 134 132
Fig. 2: Global Private Equity Real Estate Fundraising, 150
76
127
100
Q1 2003 - Q3 2010 50
33
0
Source: Preqin Q1 Q1 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2007 2008 2009 2009 2009 2009 2010 2010 2010 2010
45 43 42 No. of Funds in Market Aggregate Target ($bn)
Aggregate Capital Raised ($bn)

40 36 35 34
35 31
30 27 27 27 Fig. 5:
23 24
25 23
21
Average Time Taken for PERE Funds to
20 16
18 Achieve a Final Close by Year Fund Closed
15 14 15
15 11 12 10 Source: Preqin
10 10 9 8 9 20
Average Time Spent in Market

10 18.2 18.9
5 6
5 2 3 3
15
12.6
0
(Months)

9.8 10
Q1 2003
Q2 2003
Q3 2003
Q4 2004
Q1 2004
Q2 2004
Q3 2004
Q4 2004
Q1 2005
Q2 2005
Q3 2005
Q4 2005
Q1 2006
Q2 2006
Q3 2006
Q4 2006
Q1 2007
Q2 2007
Q3 2007
Q4 2007
Q1 2008
Q2 2008
Q3 2008
Q4 2008
Q1 2009
Q2 2009
Q3 2009
Q4 2009
Q1 2010
Q2 2010
Q3 2010

10

0
2006 2007 2008 2009 2010 YTD

There was an increase in aggregate manager confidence in the prospects

capital raised in Q3 2010 from for fundraising in the coming months.
the previous quarter of 14%, with
19 funds closing with aggregate The average time taken for private
commitments of $8.7 billion, up equity real estate funds to reach a
from the $7.6 billion raised in Q2 final close has continued to increase
2010. However, since 2005 there over 2010, as Fig. 5 shows. Funds
have only been two quarters in closed in 2010 to date have taken
which less capital was raised, an average of 18.9 months to reach
demonstrating that fundraising a final close, up from 18.2 months in Preqin provides information, products and
remains extremely challenging in the 2009 and nearly double the average services to real estate firms, fund of funds,
current environment. 13 primarily time taken for funds closing in 2006. investors, placement agents, law firms, advisors
North America-focused funds raised and other professionals across six main areas:
a total of $6.0 billion, one primarily The largest fund to close in Q3 2010
Europe-focused fund closed on $0.8 was Fortress Credit Opportunities > Fund Performance
billion, and five primarily Asia and Fund II. The vehicle aims to make > Fundraising
Rest of World-focused funds raised investments in a range of distressed > Fund Manager Profiles
$1.9 billion. and undervalued credit investments
including, but not limited to, > Investor Profiles
The aggregate target of funds opportunistic corporate loans and > Fund Terms
currently on the road seeking capital securities, residential loans and > Compensation and Employment
continued to decline over Q3 2010, securities, commercial mortgage
as Fig. 4 shows. However, the loans and securities and other Available as:
number of funds in market increased consumer or commercial assets and > Hard Copy Publications
to 403 over the period, perhaps asset-backed securities. > Online Database Services
suggesting a slight increase in fund > Consultancy and Research Support
> Tailored Data Downloads

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