Fundraising for real estate investments is on the rebound, yet investors are still selective when it comes to the fund managers, strategy and risk profile. According to Preqin, fundraising for global real estate investments has grown to approximately $155 billion in 2025 compared to 2024 and is still below the average of the past five years. According to McKinsey, transaction momentum is also on the rise with the value of global real estate transactions growing to approximately $873 billion in 2025, an increase of about 12% year over year.
Thank you for reading this post, don't forget to subscribe!In this context, real estate capital raising services require much more than just maintaining a list of potential investors. They require credible underwriting, investor research, investment materials and follow-up to turn a good idea into a good investment.
Real Estate Capital Raising Support in a Selective Market
Fundraising conditions improved in 2025, though capital flow was unevenly distributed among fund managers and investment strategies. There is an increased preference for differentiated deals, solid platforms, and management with the ability to show how returns will be created.
Real Estate Fundraising Recovers, Selectively
Fundraising Is Recovering
Private real estate investment fundraising faced hard times after the last market peak. PERE reported that fundraising dropped to $131.1 billion in 2024, which became the third annual decrease. Preqin noted separately that $96 billion had already been raised until the third quarter of 2024. Fundraising conditions improved in 2025. Preqin noted approximately $155 billion of global real estate fundraising in 2025. Income-based strategies, such as core, core plus and real estate debt accounted for 57% of fourth quarter fundraising as opposed to 30% average five-year quarterly numbers. The data indicate that investors are back, yet with new priorities.
Hence, the managers must have real estate capital raising support services to link their strategy with current investors’ needs, not just rely on general market improvement. Financial credibility is extremely significant. Real estate financial modeling is quite detailed and helps managers prove how leverage, occupancy, rental increases, operating expenses and exit assumptions influence profitability.
Transaction Activity Is Improving
The field of real estate capital raising support is also aided through reclaiming transaction markets. According to McKinsey, there were $873 billion of global real estate deal values in 2025, which was an increase of approximately 12 percent compared to 2024. Nonetheless, there were significant disparities depending on the property type. Specialized real estate constituted approximately 14 percent of global deal volumes. There was an increase in deal activity in data centers by approximately 37 percent, and office deals increased by approximately 17 percent.
In the United States, there was an increase in deal activity for Class A offices by approximately 34 percent. This becomes significant while making a presentation for an investment opportunity as well as real estate capital raising support.
Capital Is Becoming More Concentrated
Fundraising recovery is not equal across all managers. McKinsey found that the top 20 managers were able to generate 51% of the trailing five years closed-end real estate fundraising as of 2025. In addition, approximately 17% of institutions indicated they would be reducing their number of managers. This represents a tougher landscape for emerging and mid-sized managers without the prestige of the largest platforms; these managers have to have a differentiator, transparency, strong underwriting process and proof of execution to separate themselves. Capital raising skills can assist these managers to turn those attributes into an investment product.
Real Estate Capital Raising Support Across the Investor Journey
Real estate capital raising support does not involve just one pitch or discussion. It is a process that entails identifying, qualifying, engaging, due diligence, investment committee decision-making and commitment of investors.
Investor Mapping Improves Outreach
A long list of investors is not always an indication of good fundraising. Managers must stratify potential investors according to geography, type of asset, risk tolerance, level of commitment, previous investments, and allocation strategies. An organized structure for investors will help the management team focus on those potential investors who are more aligned with the strategy. For instance, an investor seeking stable assets needs a different approach than an investor seeking opportunistic assets. This is critical particularly in cases where institutional investors consolidate their GP relationships in the case of real estate capital raising support.
Pitch Materials Must Demonstrate the Investment Case
However, a powerful investment presentation will go beyond simply describing attributes and returns. Investors are interested in how these returns are created. How would the business perform if the cost of capital is higher? If rental growth rates fall? What is the sensitivity of the predicted IRR to the cap rate at the exit point? How much of the value creation is based on appreciation and how much on performance? Financial models, pitch decks, market analysis, and investment memoranda must give the same answers to these questions. McKinsey stated that cap rate compression and appreciation are now riskier return drivers compared to the last cycle.
Prepare for Due Diligence Early
Institutional investors may review track records, attribution, portfolio construction, valuation approach, corporate structure, governance, service providers, reporting system, ESG policy, and cybersecurity. Managers should have all this information ready prior to commencing the actual due diligence process. Good due diligence information allows a quicker answer and prevents discrepancies among the financial model, presentation, and documentation. Effective real estate capital raising support is not just about marketing. It enables setting up the analytical foundation that will help to make an investor interested in investing.
Real Estate Capital Raising Support Strategies for Better Conversion
Although technology has the potential to increase fundraising capability, conversion requires relevance, proof, timing, and trust for real estate capital raising support. The most effective processes utilize organized investor information with personalized communication.
Real Estate Capital Raising Support: Precision to Close
Target Investors According to Fit
Managers can rank investors based on their property preference, geographic mandate, investment time horizon, experience of investing, return expectations, and usual ticket size. For example, when managers try to raise $500 million in an opportunistic fund, an investor who consistently invests between $75 and $100 million into North American opportunistic funds could be worth more than a large investor whose focus is European core investments. There are changes in market preferences too.
According to Preqin, value add strategies made up about 37% of total real estate capital raised through the third quarter of 2024. However, according to McKinsey, in 2025 the fundraising volume of opportunistic investments was increased by approximately 65% year over year. At the same time, fundraising volume of value add investments fell from $93 billion in 2022 to approximately $27 billion.
Use Technology With Personalization
Automated prospecting, CRM, classification of investors, preparation of meetings, and personalization of communication can be achieved via AI. Nevertheless, automation should complement relationships, not replace them. The system will be able to recognize the investor who has been investing more in logistics or real estate debt. However, the fundraising expert still needs to explain why this approach would suit that mandate. Pipeline statistics also serve as a strength.
It will help track response rate, number of qualified meetings, data room utilization, diligence process, soft commitment level, hard commitment level, and average hard commitment size. Low conversion from meetings to diligence process indicates the need for adjustments of the investment proposition. Investors who conduct extensive diligence but make few commitments suggest that fund terms, timing, structure, or portfolio need to be considered. Thus, it becomes an operationally driven process of real estate capital raising support.
How Magistral Provides Real Estate Capital Raising Support
Managers often have investment expertise but limited capacity to simultaneously conduct investor research, maintain databases, update models, prepare materials, organize data rooms, and manage outreach. External support can expand execution capacity while senior professionals concentrate on investor relationships.
Investor Research and Real Estate Capital Raising Support
Magistral Consulting’s real estate services include LP and GP outreach, HNI outreach, meeting setup, fundraising assistance, pitch deck preparation, competitive intelligence, and investment memorandum support.
Its investor database offering states coverage of more than 35,000 LP and GP leads across the United States, Europe, the United Kingdom, Middle East, India, and China. Large databases alone do not guarantee successful fundraising. Their value comes from filtering prospects according to strategy, geography, investor type, and probable fit.
Combining investor intelligence with real estate capital raising support can help managers build smaller but better qualified pipelines.
Financial Modeling and Investment Materials
Institutional investors expect the financial model, pitch deck, investment memorandum, and supporting market research to communicate the same assumptions.
Magistral’s financial modeling services cover areas such as valuation, DCF analysis, sensitivity analysis, debt analysis, comparable company analysis, and real estate financing models.
These capabilities can help managers explain return drivers and downside scenarios more clearly. They also reduce inconsistencies that may create unnecessary questions during investor diligence.
Building a Repeatable Fundraising Process
Fundraising should not restart from zero each time a manager launches a new vehicle. Investor records, market intelligence, models, reporting templates, diligence materials, and communication history can form a reusable fundraising infrastructure.
INREV reported that at least €117 billion was raised for non-listed real estate globally during 2025. Pension funds accounted for approximately 39% of capital sources, compared with 32% in 2024. Moreover, 87% of surveyed managers expected real estate capital raising support activity to increase over the following two years.
Opportunity is therefore returning, but competition remains intense. Managers can use private equity style analytical and execution support to scale research, modeling, documentation, and investor targeting without unnecessarily expanding internal teams.
Ultimately, real estate capital raising support is most effective when fundraising becomes a repeatable institutional capability. Clear strategy, defensible underwriting, targeted investor intelligence, organized diligence, and disciplined engagement allow managers to adapt as investor preferences and property markets change.
About Magistral Consulting
Magistral Consulting has helped multiple funds and companies in outsourcing operations activities. It has service offerings for Private Equity, Venture Capital, Family Offices, Investment Banks, Asset Managers, Hedge Funds, Financial Consultants, Real Estate, REITs, RE funds, Corporates, and Portfolio companies. Its functional expertise is around Deal origination, Deal Execution, Due Diligence, Financial Modelling, Portfolio Management, and Equity Research
For setting up an appointment with a Magistral representative visit www.magistralconsulting.com/contact
About the Author
Aman is an investment-research specialist with 5+ years of experience across business and investment research, including 2+ years with Big Four firms like KPMG. A Stanford Seed alumnus with an MBA in Finance and a Bachelor of Commerce (Hons) from University of Delhi, he focuses on private equity, venture capital, and renewable energy sectors. He leads project teams at Magistral Consulting, delivering financial research, due diligence, deal sourcing, and M&A support, while driving strong process management and analytics. His blend of attention to detail, strategic thinking, and dynamic execution enables him to turn complex data into actionable investment insights.
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