While global closed-end fundraising hit a slump in 2024 with the lowest totals seen in over a decade, the market has staged an impressive comeback as private property fundraising rebounds 29% in 2025. Data from parallel sectors supports this theme of continuity, specifically a study that analyzed over 1,100 private foundations active for at least two full years.
Private property fundraising rebounded 29% in 2025, marking an impressive comeback from 2024’s decade-low slump.
It is important to look back at the difficult landscape of 2024, where global closed-end fundraising plummeted 28 percent to $104 billion, marking the lowest annual total since 2012.
Debt fundraising suffered the steepest decline, dropping 44 percent, as capital meant for debt strategies was increasingly channeled through broad special-situation and opportunistic vehicles instead of dedicated funds.
Even opportunistic fundraising took a 31.5 percent hit to $37 billion, mostly because 2023 data was skewed by a massive fund four times larger than 2024’s biggest player.
Curiously, opportunistic strategies remained flat on a rolling one-year return basis despite continued market volatility.
Fortunately, the market refused to stay down. Global real estate deal value grew 11 percent in 2024 to $707 billion, signaling that investors were improving their risk assessment of the real estate class.
Rate cuts created a friendlier financing environment, while capitalization rate compression helped boost property valuations.
This trend mirrors the luxury housing sector, where lower interest rates have significantly boosted high-end property sales across major markets in 2025.
With reduced supply in multifamily and industrial sectors greatly supporting deal activity, asset values finally began stabilizing. Although regional nuances persist, the market is currently exhibiting signs of gradual recovery as 2025 progresses.
