Whilst demand for Private and Infrastructure Debt strategies appears to be on an ever-upward trajectory, are inflows to real estate focussed private credit funds starting to dip? This Preqin report portrays a significant decrease in assets raised by real estate fund managers in 2017. Will this continue in 2018?
Nearly half (47%) of real estate fund managers did not reach their targets in 2017 – up from 41% in 2016 and the highest proportion in five years. Raichura says this suggests managers are “struggling to convince clients to part with their money to invest into a market in which pricing is looking increasingly stretched”.