The boom in private equity real estate fundraising that has delivered a slew of billion-dollar mega-funds in recent years has slammed into some formidable headwinds. Yet near-term challenges aren’t diminishing the appetite for capital among a still crowded field of fund managers and sponsors.
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Despite COVID-19, Global Institutions Continue to Increase Allocations to Real Estate, Finds Hodes Weill & Associates and Cornell University
December 10, 2020 GMT
NEW YORK (BUSINESS WIRE) Dec 10, 2020
Uncertainties related to COVID-19 have not dampened global institutions’ confidence in commercial real estate. In fact, investor sentiment increased for the third straight year, reaching a seven-year high in 2020, according to Hodes Weill & Associates and Cornell University’s Baker Program in Real Estate’s eighth annual Institutional Real Estate Allocations Monitor.
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The “Conviction Index” in this year’s survey, which measures institutions’ view of real estate as an investment opportunity from a risk-return standpoint, increased from 5.7 to 5.9. The steady growth in confidence in the asset class reflects the strong returns investors have realized over the last