Private real estate fundraising reversed course in 2025, posting its first year-over-year increase since 2021, according to new data from PERE. Investors committed approximately $222 billion during the year, representing a 29 percent jump from 2024.
That rebound, however, was heavily influenced by a small group of dominant players. Brookfield and Blackstone alone accounted for roughly 16 percent of all capital raised in 2025, a dramatic increase from their combined 0.8 percent share the year prior. Notably, 2024 had marked the weakest fundraising year since 2020.
Brookfield led the field by closing the largest fund of the year at $16 billion. Blackstone followed closely, securing $11 billion for an opportunistic strategy and another $8 billion for a debt-focused vehicle, ranking second and fourth overall, respectively.
Data Centers Surge as Sector Preferences Shift
One of the most significant changes in 2025 was the surge in data center investment. The sector captured 37 percent of all capital raised, up sharply from just 2 percent in 2024. Major fundraising efforts included a $7 billion vehicle from Blue Owl and a $3.6 billion fund from Principal Financial Group.
At the same time, several traditional property types saw their share of capital decline. Multifamily, while still the largest category, fell to 32 percent of total fundraising from 49 percent a year earlier. Industrial dropped to 16 percent from 26 percent, and office slipped to just 2 percent, down from 6 percent in 2024. Meanwhile, investor interest ticked higher in retail, which rose to 5 percent from 1 percent, and student housing, which increased to 3 percent from 1 percent.
Strategy Mix Evolves as Investors Reposition
Fundraising strategies also reflected a changing risk appetite. Opportunistic vehicles drew 33 percent of capital in 2025, nearly double their share from the prior year. Core-plus strategies expanded to 10 percent, up from 5 percent. In contrast, value-add funds declined to 22 percent from 30 percent, while debt strategies fell to 24 percent from 31 percent, both of which had performed more strongly in 2024.
Looking ahead to 2026, only one fund currently targets commitments of $10 billion or more: Starwood’s Distressed Opportunity Fund XIII. Blue Owl and Strategic Value Partners follow, each marketing vehicles with $6.5 billion targets.
Fundraising Takes Longer—But Targets Are Reached
Despite the rebound in capital formation, fundraising timelines continued to lengthen. Funds that closed in 2025 took an average of 25 months to raise capital, up from 23.7 months in 2024 and significantly longer than the roughly 15-month averages seen in 2020 and 2021.
Even with extended fundraising cycles, managers largely met their goals. About 52 percent of vehicles closed at or above their targets in 2025, compared with 39 percent in 2024 and 44 percent in 2023. Notably, eight of the ten largest funds closed during the year exceeded their original targets.
North America-focused strategies remained the primary destination for capital, attracting $89.2 billion. Multi-region funds followed with $69.9 billion, while Europe-focused vehicles raised $40.6 billion.
Source: CPE