Preqin and EisnerAmper Prepare Private Equity Real Estate Market Outlook

With rising interest rates, high valuations and the potential for a change in cycle phase as key challenges at the forefront of fund managers' minds, the real estate market is changing as we enter 2019. Published in partnership with Preqin, the “EisnerAmper 2019 Private Equity Real Estate Market Outlook” report will provide an overview of activity in the private real estate market in 2018 and an outlook on the key trends expected to shape the industry in 2019.

Ahead of the March 2019 publication of this study, EisnerAmper’s Real Estate Private Equity leaders Lisa Knee and Todd Hankin published an article looking at the fundraising challenges facing the real estate industry. Examining the data, 2018 has proven to be a tough fundraising year, with increased competition and market uncertainty creating a difficult environment for closing deals. Preqin data shows that the number of private real estate funds closed and aggregate capital secured has decreased for three successive quarters to Q3 2018. Following two years of decreasing fundraising totals, it remains to be seen how this year will pan out. While 2018 fundraising levels look as though they will pass the $100B landmark for the sixth year in a row, activity in the final months of 2018 will ultimately determine whether this total will surpass 2017’s.
 
In their discussion, they identify two trends to watch in particular (1) debt strategies attracting capital; and (2) rising valuations leading to reduced returns.