Core-plus and value-add strategies are now investing in new asset categories and infrastructure service providers as GPs seek to accommodate the return expectations of a new class of infrastructure investor. The deal-making momentum of 2021 continued through the first half of 2022, and despite the striking slowdown in second-half deal activity, 2022 remained the second most active year on record. It is based in Amsterdam, the Netherlands. Investment prospects in property subsectors, Facebook: quarterly number of MAU (monthly active users) worldwide 2008-2023, Quarterly smartphone market share worldwide by vendor 2009-2023, Number of apps available in leading app stores Q3 2022, Profit from additional features with an Employee Account. Principles for Responsible Investment, annual report, 2022. Infrastructure and natural resources grow and evolve, Private markets advance their ESG agendas. A year ago, managers reported their first double-digit jump since 2018 in worldwide AUM, Pensions & Investments ' annual real estate money manager survey showed. This explains why some of the results from the current survey may seem substantially different from those in previous years. As institutional investors flock to real estate, investment managers must avoid getting stuck in the middle of the markettoo big to be nimble yet too small to reach scale. Leading real estate investment managers by AUM worldwide | Statista Real Estate Property Services Premium Premium statistics Industry-specific and extensively researched technical data. A year ago, managers reported their first double-digit jump since 2018 in worldwide AUM, Pensions & Investments annual real estate money manager survey showed. Before February, PGIM Real Estate had record-breaking fundraising, and pipelines for debt and equity transactions were as good as weve seen them, Mr. Adler said. Large institutional investors are looking for strategic relationshipswith managers in which they can deploy big pools of capital across a range of opportunities and access a range of services that go well beyond the product, such as research, analytics, and advice on their portfolios. Show sources information Real estate assets for U.S. tax . From April through August, investors ability to obtain debt financing continued to contract, he said. By 2030, 35 million buildings should be renovated, Deloitte said. Get access to the news, research and analysis of events affecting the retirement and institutional money management businesses from a worldwide network of reporters and editors. They excel at identifying opportunities and at financial engineering, relying on operating partners to develop, renovate, and manage the assets from day to day. Macroeconomic events had mixed impact across sectors: rising oil and gas prices drove a resurgence in demand for traditional energy investments, while growth in renewables fundraising continued amid the multiyear push toward decarbonization. The best of the best: the portal for top lists & rankings: Strategy and business building for the data-driven economy: Show sources information Based in Chicago, the National Council of Real Estate Investment Fiduciaries (NCREIF) is the American association of institutional real estate professionals who share a common interest in their industry. https://www.ncreif.org. Their roles range from pure capital allocators (relying on third-party operators to source, execute, operate, and dispossess) to vertically integrated players that do it all. Total private markets assets under management (AUM) reached $11.7 trillion as of June 30, 2022. Just when real estate managers felt that the worst of the pandemic fallout was over, they got rocked by volatility and interest-rate increases, forces that combined to hold global assets under management to $1.9 trillion, a 0.4% increase in the year ended June 30. After making an investment, GPs have five value creation levers they can pull to improve their portfolio: Pontus Averstad is a senior partner in McKinseys Stockholm office; Alejandro Beltrn is a senior partner in the Madrid office;Marcel Brinkman is a partner in the London office; Paul Maia is a partner in the New Jersey office; Gary Pinshaw is a senior partner in the Sydney office; David Quigley is a senior partner in the New York office, where Aditya Sanghvi is a senior partner; andJohn Spivey is an associate partner in the Boston office, where Brian Vickery is a partner. Really Great People . The top two slots are unchanged from last year with the Blackstone Group leading the pack of managers with AUM of 260.5 billion, followed by Brookfield Asset Management on 172.4 billion. 5y. Deal volume fell 20 percent, declining in each consecutive quarter throughout the year (Exhibit 5). As the name suggests, a tenant-only broker represents tenants . Conversely, dollars raised by sub$5 billion funds decreased by 28 percent. A few such firms have collected more capitaland have transformed this newfound scale from a simple outcome of their success into a genuine competitive advantage. In other real estate cycles, so-called hot money moved into real estate at the top of the market and then panicked when there was a downturn, he said. The ideal entry-level account for individual users. But ESGs growing impact on private markets goes beyond just dedicated funds and deals: most funds (of any strategy) now consider ESG risk factors in due diligence, and some explicitly include ESG concepts in their value creation plans. View the free report More than great insights About the Fund Manager Survey 2021 An activist shareholder's campaign to sack the external manager at a small Singapore real-estate investment trust has shone the spotlight on the industry's East versus West split, with . As in 2020, when private debt was the only private asset class that recorded fundraising growth, investors ability to allocate to one or another strategy based on the prevailing market environment has contributed to consistent top-line growth through business cycles (Exhibit 7). Josie Workman, inrevteam@firstlightpr.com | +44 (0) 7460 325 392. With mortgage rates high and offices empty, investors have . And the ongoing war and humanitarian crisis in Ukraine further exacerbated risks to the global economy, including higher commodity prices and disrupted supply chains. To use individual functions (e.g., mark statistics as favourites, set How to Find a Real Estate Agent Near You. Ethnic, racial, and gender representation also remains imbalanced in senior positions and investing roles, suggesting that firms broadly continue to miss talent opportunities. Nuveen assets under management (AUM) is inclusive of underlying investment specialists. First-time fund launches also decreased by 40 percent. In the inaugural PERE 100 ranking, the top 10 managers accounted for $182 billion - or a jaw-dropping 42 percent - of the total $442.3 billion raised over the previous five years. The discrepancy this year drove private market allocations higher on a percentage basis across institutional portfolioscloser to preexisting targets for most, and above targets for many limited partners (LPs)triggering the so-called denominator effect. To provide some perspective to the industrys quick and impressive turnaround, consider that the assets under management of the top 100 real estate investment managers totaled approximately $1.2 trillion in 2008. Each licensee's former principal broker or property manager will also get an email notification. AUM ascended higher, as it has in every year since the global financial crisis, to $7.6 trillion. 04:13. The manager with the most mezzanine assets managed for U.S. tax-exempt investors was Nuveen, with mezzanine assets dipping 1% to $6.7 billion. Leverage levels are down and returns rise as interest rates rise, he said. Winning with the long tail requires a credible track record and an exceptional sales forcesomething many managers lack. The full impact of the current slowdown on real estate managers assets under management wont be reflected in P&Is survey results until 2023, Mr. Adler said. Justin St Clair-Charles, inrevteam@firstlightpr.com | +44 (0) 7769 644 059 Each of the top 10 fund managers posted an AUM of at least 80 billion in 2020. And multifamily and industrialsectors benefiting from changes in living and shopping behaviorsoftened after rapidly rising rents and occupancy of the past two years boosted performance (Exhibit 6). The Veritas Group. Even after massive capital inflows, the sector continues to enjoy a structural tailwind, as LPs remain underweight relative to long-term targets (Exhibit 2). One recent survey indicates that nearly three-quarters of LPs would consider eliminating a manager from consideration if it was unable to provide acceptable standards of ESG-related disclosures.7Global Private Equity Barometer, Coller Capital, Winter 202223. Consideration of ESG is not limited to fundraising and deal activity. Institutional Investing in Infrastructure (i3). New platforms comprised 28 percent of total transactions in 2022, 14 percentage points lower than five years ago. Please create an employee account to be able to mark statistics as favorites. To consistently deliver news, research and analysis to the executives who manage the flow of funds in the institutional investment market. Use Ask Statista Research Service, Select European cities ranked by overall prospects in real estate 2023, London Stock Exchange (UK): largest REITs by market cap 2022, Real estate market: sources for debt financing in Europe in 2023, Volume of commercial real estate investment in European countries 2020-2022. Total private markets assets under management (AUM) reached $11.7 trillion as of June 30, 2022. Only the top three in this region have an AUM of more than 30 billion each. Real estate equity assets managed for U.S. tax-exempt investors grew by a whopping 16.9% to $586.6 billion. facts. The slowdown in transaction volume came despite everything flashing green for investing in debt, said Jason Hernandez, New York-based head of real estate debt at Nuveen. In the future, this segment is the one where we expect breakout asset growth to concentrate. Real estate fund managers registered with the Securities and Exchange Commission are working on their Form ADV filings. Theres been no drama, no disaster, no big falling off a cliff, because the real estate markets are more mature than they were in past cycles, Mr. Adler said. 03:28. Credit crunch compounded by office vacancies could have broad economic impact . All types of institutional investors around the world are fairly sanguine, Mr. Adler said. As the landscape evolves, understanding the strategy employed by each manager may help inform the search for investment performance. Heitman is a global real estate investment management firm with over $53 billion in assets under management as of December 31, 2022. The challenge is that transactions are down and there isnt enough of it, he said. Beneath these headline statistics, revolutions in energy, mobility, and digitization are changing the face of infrastructure investing. The Financial Stability Oversight Council said in a . Considerations for diversity, equity, and inclusion (DEI) have become an important part of the fundraising, hiring, and investing landscape in private markets. Overall, I have to say that this is a company that I want to grow with. Blackstone, with more than 12,000 real estate assets and over 230 portfolio companies, deploys capital . A longer tail of investors is required for funds to reach profitable scale. The report also ranks real estate managers based on their total AUM in the categories of discretionary separate accounts under management, advisory separate accounts and assets, and indirect real estate investment vehicles. Other managers have distinguished their firms by developing unparalleled expertise (and, often, operating capabilities) in niche segments (see sidebar, The evolving landscape of real estate investment management). Managers in the Asia Pacific region accounted for the largest share of mergers in 2020 at 25%, versus 18% for their counterparts in Europe and 17% in North America, reflecting the different stages of evolution in each of the regional markets. 2022 will prove to be the best year yet for ESG-focused fundraising, with $24 billion raised through the first half of the year. At the same time, the most prolific lenders including banks are on the sidelines, making debt limited and too expensive for many managers to achieve the returns that investors require, Mr. Dennis said. 1 - Engage a tenant-only broker. Mr. Trump did not pursue any new international real estate deals while in office, but his search for deep-pocketed international partners picked up when he left the White House in January 2021 . About INREV Quantitative tightening and dislocation in asset prices raised fears of an economic slowdown. In the first half of 2022, central banks fought roaring inflation by sharply raising interest rates, and public market valuations cratered. This exercise has resulted in a creation of research definition of AUM which has been applied by all participants in this years Fund Manager Survey to their data submissions. Open-end fund AUM growth isnt surprising given record market performance for private core real estate over the trailing one-year period, when the NCREIF Fund Index-Open-End Diversified Core Equity hit an all-time record return, said Peter Rogers, Chicago-based director, investments at Willis Towers Watson PLC. In, IREI. Over time, private real estate institutionalized to become an independent asset class. . Financial services (2.5 times) and information technology (2.2 times) recorded the largest multiple declines among PE subsectors, while rising commodity prices drove multiple expansion in raw materials and resources (+2.6 times). In Europe, the uptick was even more marked climbing to 8.1% from 3.6% the year before. In the U.S., real estate debt transactions slowed when the war in Ukraine broke out, but the real estate equity markets didnt start tapping on the brakes until June with the Federal Reserves first 75-basis-point interest rate hike, Mr. Adler said. The non-profit association is focused on increasing the transparency and accessibility of non-listed vehicles, promoting professionalism and best practice, and sharing knowledge. to incorporate the statistic into your presentation at any time. The total market value of investments being managed is called assets under management (AUM) and can be calculated in different ways. Around 20% of respondents globally were involved in merger activity in both 2019 and 2020, while the equivalent results for acquisitions were a little lower at 16% and 14% respectively. statistic alerts) please log in with your personal account. The 12-month period ended June 30 was marked by two major events: The start of Russias war in Ukraine in February was a cold shower for both debt and equity, Mr. Adler said. 5.0. on November 23, 2021. Across the entire investment life cycle, from fundraising and asset selection to value creation and exit planning, ESG is on the minds of investors (Exhibit 11). Performance of every private markets asset class declined relative to 2021 but continued to outperform public market equivalents at current marks, though private market valuation changes often lag those in public markets. 130 E. Randolph St. Climate change in the form of extreme weather events and rising sea levels leading to flooding are impacting all property types in Europe, leading to stringent energy efficiency regulations, he said. ", IREI, Distribution of assets under management of leading real estate investment managers worldwide in 2021, by region Statista, https://www.statista.com/statistics/1193076/assets-under-management-of-real-estate-investment-managers-globally-by-region/ (last visited July 01, 2023), Distribution of assets under management of leading real estate investment managers worldwide in 2021, by region [Graph], IREI, August 9, 2022.