Private Equity’s Strong Appetite for Risky CRE Funds

Not only was 2018 a volatile year for investors but nearly half of those surveyed by Preqin recently said that the market is due for a correction within the next three year. However that did not deter private equity real estate from focusing on higher-risk value-added and opportunistic funds. According to Preqin, fundraising in these categories totalled $36 billion and $43 billion respectively last year. By contrast, core and core-plus was significantly down from $15 billion in 2017 to $6.1 billion in 2018.