44 new global private equity RE funds set up, but overall slide extended in first half

Some 44 new real estate private equity funds have been established worldwide in recent weeks but the declining trend that brought a sharp drop in first half 2009 has not halted, says Swiss-based investment manager Swisslake Capital. Debt funds however are growing. The early part of 2009 was characterised by falling demand from institutional investors facing the 'denominator effect'. However the survey, based on 2,503 REPE funds and 958 managers, shows a slight improvement of investor sentiment and expects stronger initiatives from managers. "We measured 44 new REPE funds established since July worldwide, which are not contained in our survey," Swisslake CEO Bernhard Köhler told PIE. "Overall however, the trend is still declining due to the economic situation, and in comparison to last year."