Joint ventures and club deals reported the biggest increase in allocations for European strategies, doubling the share of capital raised from 5% in 2020 to 10% last year, and reaching a record high of €6.3 billion.
Separate accounts investing directly into European real estate were the second most-preferred vehicle type with 23% of the total, while real estate debt vehicles continued to gain importance among investors, reinforcing their position as the third most attractive vehicle type for the second year in a row with a total share of 19% in 2021.
The European non-listed debt market, unlike the US, is dominated by smaller closed-end funds and local European capital dominates, accounting for around 90% of the total capital raised in 2021. According to INREV, this is expected to change as the market evolves and more cross-regional investors get interested in the segment.
Of the vehicles following European single sector strategies, residential and industrial/logistics raised the most capital in 2021, with 12% and 11% respectively. Industrial/logistics saw the largest increase in capital raising activity, nearly doubling its 2020 share of 6% and remaining well above its ten-year average of 7%.
Core dominates, as the majority of capital raised for European strategies was earmarked for low-risk strategies. Out of the €55.4 billion raised in total, 72% was destined for core equity or senior debt strategies.