For the first time on record, PERE’s global investor ranking contends with a decline in aggregate allocation to private real estate.
This time last year, the 2024 cohort of the private real estate industry’s largest investors saw the slowest year-on-year growth in aggregate allocations since 2020, when the ranking was expanded from the top 50 to the top 100 investors. The rate of growth had fallen precipitously from 13.5 percent in 2022 to just 2.8 percent in 2024, mirroring the impact of rising interest rates on property valuations, fundraising and acquisition volumes.
As it turns out, this was the only the start. This year, the Global Investor 100 ranking has recorded its first ever decline. Total capital allocated to real estate by the group as of the end of 2024 has shrunk by 3.6 percent year-on-year.
At an individual level, the majority of investors in the league table saw a decline in the value of their portfolios compared with last year’s ranking: at 59, this number is up from the previous peak of 48 last year, 35 in 2023 and just 18 in 2022.
Given the ubiquitousness of the fall in portfolio value, the impact on investors’ relative positions is more subdued: only 24 returning institutions have dropped positions compared with last year.
The top 10, similarly, are little changed, with only the institutions ranked fourth and fifth last year swapping positions.
Nevertheless, deeper analysis of the ranking indicates that certain groups such as European, Canadian and Australian investors have been hit particularly hard. Meanwhile, institutions in Asia-Pacific have reversed last year’s decline to record an increase in aggregate allocation of 0.7 percent. Forces including currency fluctuations and interest rate movements have played a significant role in shaping such statistics.
At the same time, an assessment of the evolution of the ranking by traditional groupings such as investor location and type exposes an array of idiosyncratic movements both up and down the league table.
Indeed, this year’s GI 100 runs the gamut of active buyers, strategic sellers, investors growing their real estate allocations, institutions rebalancing their exposures – in short, while the macroeconomic headwinds were blowing stronger than ever in 2024, private real estate’s largest allocators chose different tactics to ride out the storm.
This ranking is based on the fair value of investors’ private equity real estate investment portfolios, both through third-party managed investment vehicles and direct investments. This fair value is measured at a single point in time for all investors to provide an apples-to-apples comparison. For the 2025 ranking, this is December 31, 2024. This is a ranking of capital allocators and excludes assets managed on behalf of third-party investors.
Private real estate
The definition of private real estate, for the purposes of this ranking, is property used for commercial/business purposes, such as offices, hotels, retail, industrial, as well as multifamily/apartment properties. It may include portfolios of single-family houses assembled via an institutional platform. Investments are measured at fair value or NAV.
Private real estate debt vehicles
We consider equity investments into private real estate debt vehicles as long as the institution includes these as part of its private real estate portfolio.
Capital invested through the following structures is included:
* Funds and funds of funds managed by a third party
(both open-end and closed-end);
* Direct investments (equity invested directly in a property
or properties);
* Co-investment vehicles;
* Separately managed accounts;
* Joint ventures
* Non-proprietary capital: This is a ranking of capital allocators and we do not include capital raised or managed on behalf of third-party investors. Specialist asset managers with full discretionary management of public pension portfolios are considered for the purposes of this ranking.
* Uncalled capital: This ranking excludes any capital that has been committed but not yet been called by a fund manager.
* Direct debt investments: We exclude any form of debt origination, such as mortgages or mortgage-backed securities, structured debt investments or any direct investments in the debt of real estate companies.
* Expected commitments: We do not count pending or future commitments and investments or the uncommitted portion of an institution’s target allocation.
* Real estate company shares: We consider these to be stock investments and part of an institution’s equity portfolio, regardless of how an individual institution may classify them.
* REITs and other public markets investments: Any investments in listed vehicles are excluded. REITs are typically traded publicly and, as such, are considered public market investments for the purposes of this ranking.
* Infrastructure: Investments either directly or through funds into infrastructure projects or energy assets.
* Hedge funds: These primarily target liquid securities or trading strategies.
* Natural resources: Investments either directly or through funds into natural resources assets (agriculture, timber, etc).
PERE’s Research & Analytics team corresponded directly with investors to confirm the total value of their private equity real estate investments as described above. In the absence of primary data, the team gathered information from secondary sources and sought to validate the researched figure with the investors themselves before publishing this ranking. We do not disclose which institutions have provided information on a primary basis. For further clarification, contact Wassyl Abdessemed: [email protected]
