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Q1 2015 Fundraising Update

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1) Q1 2015 Fundraising Update Pension fund commitments to managed real estate vehicles

2) Commitment activity significantly up through Q1 Domestic public pensions have committed $12 billion to managed real estate vehicles thus far in 2015, a 46 percent increase over 2014 Commitments to real estate managers by U.S.-based public pensions through Q1 2015 are up significantly over the same period in 2014, according to data tracked by FPL Consulting. Per FPL’s proprietary database, pensions committed $12.0 billion to managed real estate vehicles through Q1, compared to $8.2 billion over the same period last year and $5.9 billion in 2013. This surge was partially driven by several large opportunity fund closings in recent months, including those by Blackstone, Starwood, and Lone Star. Investment Strategy and Vehicle Structure High-yield (i.e. value-add and opportunistic) strategies continue to be in favor with investors in 2015, making up slightly more than three quarters of commitment dollars. This emphasis on higher yielding strategies marks the continuation of a trend that began in 2013 with investors demonstrating a greater willingness to take on higher levels of risk for the potential of higher returns. As with investment strategy, the landscape of commitments by vehicle type shifted slightly in the first quarter. While closed-end commingled funds were popular in 2014, they have been ever more so thus far in 2015, representing 54 percent of commitments YTD in 2015, versus 47 percent in 2014. The vehicle focus in favor so far this year has been Direct Equity, representing 88 percent of commitments in Q1 2015. Debt focused vehicles made up 6 percent of all commitments this quarter, and 6 percent of commitments YTD went to “other” funds (e.g. REIT securities, FoF, etc.). All three of these trends for Q1 have been impacted by the large opportunistic, closed-end, equity funds such as those mentioned above. © 2015, FPL Consulting Commitments to real estate managers (thru Q1) $B 12.0 5.9 2013 8.2 2014 2015 Commitments by investment strategy % 37 33 28 29 34 38 2013 2014 Core 49 27 Value-add 24 2015 YTD Opportunistic Commitments by vehicle type % 25 35 42 18 11 10 56 47 54 2013 2014 2015 YTD Closed-end commingled Open-end commingled Separate account

3) Property Type Vehicles dedicated to a single property type have attracted 28 percent of commitment dollars so far in 2015, a figure well below that of 2014 but slightly up compared to 2013. While retail and industrial properties were among the most prevalent of these focused vehicles in 2014, commitments through Q1 2015 have favored multifamily and “other” (i.e. niche) strategies. It will be interesting to see whether the lower percentage of property focused vehicles represents a return to the diversified fund strategies that dominated 2013, or simply an anomaly resulting from large fund closings in Q1. Breakdown of commitments by property type (among property-specific vehicles) % 2015 YTD 2014 47 25 13 6 3 16 20 Multifamily Industrial Office 32 28 12 Other Retail Geography Breakdown of commitments by geography % 8 12 5 6 8 14 41 23 56 2013 72 2014 North America Europe Global 54 2015 YTD Latin America The majority of commitment capital (54%) continues to flow to vehicles focused on North America. That said, global strategies continue to have traction with institutional investors, accounting for significantly more commitment volume in Q1 2015 than in 2014 and 2013. Part of this uptick can also be attributed to the previously mentioned closings of large, global funds this year. Asian focused strategies have attracted about 5 percent of commitments YTD. European vehicles meanwhile, have attracted 0.2 percent of commitments in Q1, representing a decrease from their popularity in 2013 and 2014. Asia Average Commitment Size The average commitment size thus far in 2015 is $96 million, which is slightly up from the 2014 average of $95 million. As one would expect, the average commitment to separate accounts is considerably higher at $211 million. It’s important to note that this metric includes both newly formed separate accounts (which tend to be larger commitments), as well as follow-on commitments to existing separate account vehicles (which are often smaller). © 2015, FPL Consulting Average commitment size (overall and by vehicle type) Overall $mm Closed-end funds Open-end funds Separate accounts 96 79 211 74

4) Manager Concentration The commercial real estate industry’s prominent players have recently attracted a disproportionate share of commitment volume, underscoring the bifurcation between ‘haves’ and ‘have nots’. While it is too early to tell whether this story will continue to ring true for 2015, an early read suggests so. The top 5 firms (by aggregate fundraising dollars over the period) represent 48 percent of volume YTD, while the top 20 represent 81 percent. It is important to keep in mind that these concentration metrics tend to decline over the course of the year. For reference, in Q1 of last year, the top 20 firms accounted for 77 percent of commitment dollars. Concentration of commitments % All others All others All others All others 48 Firms 1120 18 Firms 6-10 13 For more information, please contact: Timothy Kessler Principal tkessler@fplassociates.com © 2015, FPL Consulting Firms 1120 18 Firms 6-10 14 Top 5 firms 48 Top 5 firms 21 2014 Contact 19 2015 YTD

5) FPL ADVISORY GROUP FERGUSON PARTNERS FPL ASSOCIATES FPL CONSULTING Executive Search Compensation Management Consulting Chairmen/ Chief Executive Officers/ Presidents Benchmarking Strategic Planning Program Design Organizational Design Contractual & Policy Arrangements Corporate Finance Board of Directors/Trustees Senior Management/ Corporate Infrastructure Ferguson Partners Surveys FPL Associates Succession Planning & Leadership Specialized Research FPL Consulting About FPL Advisory Group FPL Advisory Group (“FPL”) is a global professional services firm that specializes in providing executive search, compensation, and management consulting solutions to a select group of related industries. Our committed senior partners bring a wealth of expertise and category-specific knowledge to leaders across the real estate, hospitality and leisure, and healthcare sectors. FPL is comprised of three primary operating companies that work together to serve a common client base. Ferguson Partners Ltd. provides executive and director recruitment, succession planning, and board assessment services, FPL Associates provides compensation consulting services, and FPL Consulting provides a range of organizational, financial and strategic consulting services. FPL is headquartered in Chicago, with offices in New York, London, Hong Kong, San Francisco, Singapore, Tokyo, and Toronto. From Chicago, Hong Kong, London, New York, San Francisco, Singapore, Tokyo, and Toronto, we serve clients across the globe. Our Industry Practices FPL serves clients in a select group of related sectors: Real Estate Investment Managers, Public & Private Owners/Developers, Service Firms, Commercial Mortgage Investment/Finance, Residential Mortgage Investment/Finance, Homebuilders, Engineering/Construction/Infrastructure Hospitality & Leisure Lodging, Gaming Resorts & Casinos, Restaurants & Cafes, Sports & Recreation, Amusement Parks & Attractions Healthcare Healthcare Services Firms, Seniors Housing and Skilled Nursing Owners/Operators, Hospitals, Non-Profit, Faith-Based, Clinic Based, and For-Profit Healthcare Systems, Academic Medical Centers, Managed Care Companies, Healthcare Management Consulting, Business and Technology and Start-up Companies CHICAGO HONG KONG LONDON NEW YORK SAN FRANCISCO SINGAPORE TOKYO TORONTO www.fpladvisorygroup.com The Ferguson Partners recruitment practice consists of five affiliated entities serving FPL’s clients around the world: Ferguson Partners Ltd. headquartered in Chicago with other locations in New York and San Francisco, Ferguson Partners Canada Co. in Toronto, Ferguson Partners Europe Ltd. headquartered in London with a Japan branch located in Tokyo, Ferguson Partners Hong Kong Ltd. in Hong Kong, and Ferguson Partners Singapore Pte. Ltd. in Singapore. Ferguson Partners Europe Ltd. is registered in England and Wales, No. 4232444, Registered Office: 100 New Bridge Street, London, EC4V 6JA. Ferguson Partners Singapore Pte. Ltd. is registered in Singapore, Business Registration No. (UEN) 201215619H, Employment Agency License No. 12S6233. FPL Associates L.P., the entity which provides consulting services to FPL’s clients, is headquartered in Chicago.