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With only $19.8bn raised, the first quarter of 2024 recorded the lowest Q1 fundraising amount since 2011 when $15.2bn was corralled.

Fundraising for Alterra IOS Venture III was completed within eight months, well ahead of the average time managers are in the market raising their funds.

At a size of $1.4bn, ACORE Credit Partners II is also the joint fourth-largest private real estate fund closed globally so far this year.

The partial exit by the Toronto-based manager and its joint venture partner Investment Corporation of Dubai is a marker for institutional investors looking at doing business in the region, Jad Ellawn, Brookfield’s head of Middle East, told PERE.

The venture is backed by two sovereign wealth funds and follows a 2021 industrial partnership with the same investors.

While the largest diversified funds still rule the pack, capital is increasingly flowing to vehicles with a singular investment focus.

Indonesia’s first and only sovereign wealth fund expects to expand its real estate allocation to 15% over the next five years.

At the PERE Network Asia Summit, the sovereign fund’s global head of real estate said elevated rates had made the sector less competitive.

Although 38% of investors were overallocated to the asset class in 2023, only 27% plan to invest less capital this year.

The outlook for 2024 stands in stark contrast to 2023 as institutional appetite for real estate picks up, says James Jacobs, head of real assets for Lazard’s private capital advisory group.