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How many real estate investment firms are in the US, and can you please break this down by assets under management? (AUM).
INTRODUCTION
Thanks for asking Wonder about the number and size of real estate investment firms in the US. In Q4 2016, there were 2,420 private real estate funds in the US, as reported to the SEC on Form PF. These funds had a Gross Asset Value of $434 billion and a Net Asset Value of $339 billion. That gives us an average GAV of $179 million per fund and an average NAV of $140 million per fund. Data on asset size for all 2,420 funds is not readily available, however, PERE publishes an annual report on the largest real estate investment firms as measured by funds raised in the last five years. In the attached spreadsheet, I detail the largest real estate firms along with their website, location and size as reported by PERE.
NOTES
PERE is short for Private Equity Real Estate which is an industry association and media outlet.
For the 2017 rankings, the relevant period runs from January 1, 2012, to end of March 2017.
To appear on the PERE list, the firm must have discretion over the fund’s capital, meaning club funds, separate accounts and joint ventures are excluded from the ranking.
Further, as a ranking of private equity real estate firms, only funds with value-added and opportunistic investment strategies qualify. Strategies such as core and core-plus, as well as those not focused on direct real
estate, like fund of funds, debt funds, and funds where the primary strategy is not real estate focused, such as general private equity, are excluded.
SUMMARY
There are 2,420 registered private real estate investment funds as of Q4 2016. The GAV of these funds was $434 billion and NAV was $339 billion. The largest firms in the US raised almost $216 billion over the last five years. Thanks for using Wonder! Let us know if we can help with anything else.