New S&P Global Market Intelligence data and analysis finds highlights private equity and venture capital deal value in real estate plunged to its lowest level since at least 2019 as concerns over the trajectory of interest rates linger.
Year to date through May 28, aggregate deal value stood at $4.88 billion, down from $6.55 billion in the same period in 2023, according to S&P Global Market Intelligence data.
Key highlights from the analysis include:
- In the second quarter to May 28, deal value was at $3.10 billion, an increase from the $1.78 billion reported in the full first quarter.
- In the biggest deal so far in 2024, KKR & Co. Inc., through its KKR Real Estate Partners Americas III fund, acquired a portfolio of 19 purpose-built student housing properties from Blackstone's Blackstone Real Estate Income Trust Inc. for $1.64 billion.
- The US and Canada secured the largest amount of private equity-backed investments in 2024, with $2.62 billion. Europe tallied the highest number of deals at 39.
- On a per-sector basis, real estate operating and management companies secured the bulk of private equity-backed capital in 2024 year to date, with $3.61 billion, followed by hotels, resorts and cruise lines, with $603.7 million.
Please find the full analysis here: Interest rate woes drive private equity investments in real estate to 5-year low | S&P Global Market Intelligence (spglobal.com)
