Fundraising

Private real estate’s largest managers are maximizing their chances of fundraising success during a challenging market environment.

In a tough fundraising market, the largest managers are increasingly utilizing co-investment vehicles and separate accounts to stay competitive.

Town Lane, founded by Tyler Henritze, closed the fund at its hard-cap without the help of an IR team or placement agent.

Starwood CEO Barry Sternlicht said the redemption limits for the firm’s SREIT are temporary. But similar limits could be also imposed on other private REITs.

Even before the vehicle’s liquidity issues emerged, capital raising from the investor group had fallen off a cliff last year.

West Street Real Estate Credit Partners IV will have more than $7bn of lending capacity.

The US firm is aiming to hold a final close this summer for the globally focused vehicle, which would be its largest closed-end fund yet.

Founder Keith Breslauer says most US investors were not interested in pursuing distress in Europe, perceiving a greater opportunity at home.

Among the $20bn raised by the Toronto-based firm during the period was $2.2bn for its fifth flagship real estate fund, BSREP V.

The Southern Europe-focused manager took just five months to reach a final close for the fund, well below the European average.