Private Equity by Challis Capital Partners

Why Private equity funds focused on property raise less capital?

Private equity funds focused on property raising less capital

In the USA recently, fundraising on private equity funds focusing on property has experienced a downturn. Based on current trends, it seems unlikely that this will pick up this year, but what exactly does this mean for those wanting to make money from their private equity funds?

Well, firstly it’s important to note that this change isn’t due to private funds losing any appeal when it comes to commercial property. Quite the contrary – most of the slowdown can be attributed to the fact that funds simply aren’t able to spend the vast amounts of money they have raised fast enough, which leads to less capital being raised overall.

So, what about Australia – is this general trend also affecting equity funding over here? Well, as is so often the case, changes in the American market signal the beginning of worldwide changes. Australia is likely to see a shift too in the coming months, so, for this reason, it’s important to consider your private equity funds today before profit potential sees further drops. If you’re considering investing, it’s also a good idea to carefully consider how you might stand to benefit from external project development expertise that will help you to negotiate this changing market.

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