While 2023 saw challenges in the private real estate fundraising space, an uptick in momentum is expected in 2024.
In a Private Equity Real Estate (PERE) article, asset management partners Matt Posthuma and Eric Requenez spoke about what to expect this year. “The idea is that as valuations go down, 2024 and 2025 are going to be really good vintages for closed-end funds where people are going to buy at some pretty low valuations,” Matt said.
According to Eric, fee haircuts have become commonplace to secure investor commitments. In some distressed situations, managers are raising capital on a no-fee basis. “Given where interest rates are, and where and how quickly they may move, some clients are also considering doing a floating hurdle rate with new funds.”
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