Preqin Special Report: West Coast US Real Estate

Transcription

1 Content Includes: Fundraising Upward trend in capital raised for West Coastfocused private real estate funds continues. Preqin Special Report: West Coast US Real Estate November 14 Funds in Market Number and aggregate value of West Coastfocused funds in market is on the rise: latest statistics. Investors Which investors are dominating the West Coast real estate space? Fund Managers Majority of West Coast managers are first-time managers: latest data. Leading Players Which firms have raised the most capital for West Coast-focused funds? alternative assets. intelligent data.

2 Preqin Special Report: West Coast US Real Estate Download the data pack: Foreword The US West Coast is an important region in terms of real estate investment, home to some of the largest institutional investors in the asset class as well as many prominent fund managers. Recent years have seen funds focusing on real estate investment in the West Coast raising increasing amounts of capital, with growing numbers of managers hitting or exceeding their target size. The West Coast therefore represents a growing source of interest for institutional investors, with funds focusing on West Coast investment accounting for over a third of aggregate US regional-focused capital raised in 14 so far. Residential property in particular has grown in prominence in the region in recent years, although funds making diversifi ed property investments continue to attract the most institutional capital. The outlook of West Coast managers on the market is mixed, with a recent Preqin fund manager survey revealing that the majority of managers believe that competition for both value added/opportunistic assets and core assets has increased. With almost half of managers planning to deploy more capital in the year ahead than they did over the last 1 months, this may make fi nding value in West Coast investments challenging. Additionally, although managers agree that institutional appetite for the asset class has increased, competition for capital remains high. However, West Coast investors are, on average, under allocated to the asset class, indicating that more capital will fl ow into real estate funds as they seek to move towards their target allocation. Many institutions based in the region are planning new private real estate investments in the next 1 months, indicating that managers raising private real estate funds have signifi cant potential for success if they can effectively communicate to investors their strategy for fi nding value in this competitive market. Preqin Special Report: West Coast US Real Estate provides a detailed analysis of the real estate market on the US West Coast, supplementing the extensive information available on Preqin s Real Estate Online service. We hope you fi nd this report useful, and welcome any feedback you may have. For more information, please visit or contact info@preqin.com. Contents West Coast-Focused Fundraising p3. West Coast-Focused Funds in Market p5. West Coast-Based Investors p7. West Coast Fund Managers p9. All rights reserved. The entire contents of Preqin Special Report: West Coast US Real Estate, November 14 are the Copyright of Preqin Ltd. No part of this publication or any information contained in it may be copied, transmitted by any electronic means, or stored in any electronic or other data storage medium, or printed or published in any document, report or publication, without the express prior written approval of Preqin Ltd. The information presented in Preqin Special Report: West Coast US Real Estate, November 14 is for information purposes only and does not constitute and should not be construed as a solicitation or other offer, or recommendation to acquire or dispose of any investment or to engage in any other transaction, or as advice of any nature whatsoever. If the reader seeks advice rather than information then he should seek an independent fi nancial advisor and hereby agrees that he will not hold Preqin Ltd. responsible in law or equity for any decisions of whatever nature the reader makes or refrains from making following its use of Preqin Special Report: West Coast US Real Estate, November 14. While reasonable efforts have been made to obtain information from sources that are believed to be accurate, and to confi rm the accuracy of such information wherever possible, Preqin Ltd. does not make any representation or warranty that the information or opinions contained in Preqin Special Report: West Coast US Real Estate, November 14 are accurate, reliable, up-to-date or complete. Although every reasonable effort has been made to ensure the accuracy of this publication Preqin Ltd. does not accept any responsibility for any errors or omissions within Preqin Special Report: West Coast US Real Estate, November 14 or for any expense or other loss alleged to have arisen in any way with a reader s use of this publication. 14 Preqin Ltd. /

3 Download the data pack: Preqin Special Report: West Coast US Real Estate West Coast-Focused Fundraising Since 7, 8 West Coast-focused private real estate funds have raised an aggregate $.1bn in commitments (Fig. 1). Recent years have seen a clear upward trend in fund managers successfully attracting more capital for West Coast-focused vehicles, with the aggregate capital raised by these funds increasing year-onyear from $.8bn raised by 11 funds in 11 to $.7bn raised by 18 funds in so far has seen 11 West Coast-focused private real estate funds reach a final close, having raised an aggregate $1.6bn in capital commitments. Encouragingly, over the last two years, West Coast-focused funds have been increasingly meeting or exceeding their target capital size. For funds closed between 11 and 1, a notable 6% fell short of their fundraising target; in comparison, funds closed between 13 and 14 appear to have had more success in fundraising, with 43% reaching their target and 4% exceeding their original fundraising goals (Fig. ). Fund managers and investors have a clear preference for higherrisk strategies when investing in West Coast real estate, with Fig. 3 showing that value added and opportunistic funds have accounted for 75% of funds closed since 1. Value added funds in particular have raised the most capital, attracting $4bn, with debt funds also raising a significant amount of capital, at $1bn raised from four funds reaching a final close. There are relatively few closed-end core or core-plus funds solely focused on the West Coast, with just $.bn raised by the five funds closed since 1. West Coast-focused funds are becoming increasingly prominent in terms of the proportion of US regionally-focused capital they represent, as shown in Fig. 4. From to 14 so far, there is a clear upward trend in the amount of aggregate US-focused capital accounted for by West Coast-focused funds, indicating that investors are increasingly drawn to the region and fund managers raising funds focusing on the West Coast are attracting increasing Fig. : Fundraising Success of West Coast-Focused Closed- End Private Real Estate Funds, 11-1 vs YTD (As at 16 October 14) Fig. 1: Annual West Coast-Focused Closed-End Private Real Estate Fundraising, 7-14 YTD (As at 16 October 14) amounts of capital. West Coast-focused funds have grown from representing just % of aggregate US regional-focused capital in to 41% in 14 so far. However, vehicles focusing on the West Coast are taking longer to reach a final close, with funds closed between 8 and spending an average of 14 months on the road, compared to an average of 19 months in market for funds which have closed in 14 so far. The amount of capital allocated to property types in the West Coast has seen a shift from funds making diversified property investments to sector-specific investments, such as residential, industrial, office and retail. Residential funds in particular have raised a significant amount of capital since 1, with 4 such funds closing raising an aggregate $.1bn. Funds making diversified investments, however, still account for the most capital raised, with 1 such funds raising $3.4bn. However, the proportion of capital accounted for by diversified funds has fallen from 66% YTD No. of Funds Closed Aggregate Capital Raised ($bn) Fig. 3: Breakdown of West Coast-Focused Closed-End Private Real Estate Fundraising by Primary Strategy Focus, 1-14 YTD (As at 16 October 14) Proportion of Funds Closed % 6% Funds Closed % 43% 33% Funds Closed Above Target At Target Below Target Value Added Debt Distressed Opportunistic Primary Strategy Core Core-Plus No. of Funds Closed Aggregate Capital Raised ($bn) 14 Preqin Ltd. / 3

4 Preqin Special Report: West Coast US Real Estate Download the data pack: for funds closed between 7 and 11 to 54% for funds closed between 1 and 14 so far, with residential-focused funds correspondingly increasing from accounting for 6% of aggregate capital to 34%. The largest primarily West Coast-focused fund to close from 13 to 14 to date is Mesa West Real Estate Income Fund III. The vehicle held a final close in November 13 on $75mn, and targets Fig. 4: Proportion of Aggregate Capital Raised by Region- Specific US-Focused Closed-End Private Real Estate Funds, - 14 YTD (As at 16 October 14) a diversified range of property types utilizing value added and real estate debt strategies. In 14 so far, the largest West Coastfocused fund closed is Farallon Real Estate Partners, managed by San Francisco-based Farallon Capital Management, which closed in February having raised $375mn in institutional capital. The fund utilizes core-plus and value added strategies, targeting shopping centers, office buildings, warehouses and apartments that might be over-leveraged or mismanaged. Fig. 5: Breakdown of West Coast-Focused Closed-End Private Real Estate Fundraising by Primary Property Focus, Funds Closed 1-14 YTD (As at 16 October 14) Proportion of Aggregate Capital Raised % 98% 14% 86% 4% 76% 37% 63% 41% 59% YTD Year of Fund Close West Coast- Focused Funds All Other US Regional- Focused Funds No. of Funds Closed , 4 3,373 3,5 3,,5,54 1, 1,5 1, Residential Diversified Office Industrial Niche Retail Primary Property Focus No. of Funds Closed Aggregate Capital Raised ($mn) Aggregate Capital Raised ($mn) Fig. 6: Largest West Coast-Focused Funds Closed, YTD (As at 16 October 14) Fund Firm Final Close Size ($mn) Date of Final Close Strategy Firm Headquarters Mesa West Real Estate Income Fund III Mesa West Capital 75 Nov-13 Debt, Value Added Los Angeles, CA Encore Housing Opportunity Fund II Encore Capital Management 46 Jul-13 Distressed, Opportunistic San Francisco, CA IMT Capital Fund III IMT Capital 49 Oct-13 Value Added Sherman Oaks, CA Farallon Real Estate Partners Farallon Capital Management 375 Feb-14 Core-Plus, Value Added San Francisco, CA Swift Real Estate Partners Fund I Swift Real Estate Partners 33 Mar-14 Value Added San Francisco, CA Kennedy Wilson Real Estate Fund IV Kennedy Wilson 33 Apr-13 Value Added Beverly Hills, CA Unico Partners I Unico Properties 65 Jul-14 Value Added Seattle, WA Canyon Multifamily Impact Fund Canyon Capital Realty Advisors May-13 Value Added Los Angeles, CA WESCO IV Essex Property Trust 16 Apr-14 Value Added Palo Alto, CA Embarcadero Capital Investors IV Embarcadero Capital Partners 155 Apr-14 Debt, Distressed, Opportunistic, Value Added Belmont, CA Preqin s Real Estate Online service provides a comprehensive view of the private real estate industry, covering fund managers, fundraising, fund performance and investors plans for real estate investments. Features include: In-depth profiles of over,3 private real estate fund managers, including 9 on the US West Coast. Detailed information on over 4,9 private real estate funds, including all 47 currently in market. Net-to-LP fund performance data for over 1,5 private real estate funds. Extensive information on over 4,6 active institutional investors in real estate, including 35 on the US West Coast. For more information on how Preqin s real estate data can help you, or to arrange a demonstration of our online service, please visit: Preqin Ltd. /

5 Download the data pack: Preqin Special Report: West Coast US Real Estate West Coast-Focused Funds in Market Since, the number and aggregate value of private real estate funds in market focusing on investments on the US West Coast has increased considerably, from nine funds targeting $1.1bn in October to funds in market seeking aggregate capital commitments of $3.5bn as of October 14 (Fig. 7). Although this demonstrates managers increasing confidence in their ability to raise capital, this also highlights the increasingly crowded and competitive nature of the fundraising environment. Higher-risk strategies dominate the fundraising market, in particular funds focusing on value added investments, with 1 such funds currently in market seeking total capital commitments of $1.9bn. The largest West Coast-focused fund in market is LBA Realty Fund V, managed by LBA Realty and seeking $75mn, which is targeting value added opportunities. The fund is focused on acquiring a diversified portfolio of flex, office and industrial properties, select build to suit opportunities and notes secured by real estate. Five opportunistic funds are currently in market targeting $1.bn, with just one closed-end core fund being marketed targeting $5mn. The largest opportunistic fund in market is Rescore Property Corp, managed by San Francisco-based Encore Capital Management, seeking $5mn to develop and manage new highdensity infill multi-family apartments in select high-growth markets. Fig. 7: West Coast-Focused Closed-End Private Real Estate Funds in Market over Time, October - October In terms of property types, funds focusing on residential investments on the West Coast are the most numerous, with nine such funds in market targeting $1.3bn (Fig. 9). Six funds are targeting diversified investments, seeking $1.3bn in capital. The remaining funds are focusing on industrial, retail, hotels, office and niche investments Oct- Oct-11 Oct-1 Oct-13 Oct-14 No. of Funds Raising Aggregate Target Capital ($bn) Fig. 8: Breakdown of West Coast-Focused Closed-End Private Real Estate Funds in Market by Primary Strategy Fig. 9: Breakdown of West Coast-Focused Closed-End Private Real Estate Funds in Market by Primary Property Focus No of Funds Raising Value Added 1,917 1,15 5 Opportunistic 36 Core-Plus,5, 1,5 1, Distressed Core Debt Aggregate Capital Targeted ($mn) No of Funds ,31 1,3 6 Residential Diversified Industrial 34 Retail Hotels Niche Office 1,4 1, 1, Aggregate Capital Targeted ($mn) No. of Funds Raising Aggregate Target Capital ($mn) No. of Funds Raising Aggregate Target Capital ($mn) Fig. : Five Largest West Coast-Focused Closed-End Private Real Estate Funds in Market Fund Firm Target Size ($mn) Strategy Firm Headquarters LBA Realty Fund V LBA Realty 75 Core-Plus, Debt, Value Added Irvine, CA Rescore Property Corp Encore Capital Management 5 Distressed, Opportunistic San Francisco, CA Western National Realty Fund III Western National Properties 3 Core-Plus, Value Added Irvine, CA Gerrity Retail Fund II Gerrity Group 3 Core-Plus, Debt Solana Beach, CA MC Hospitality Fund Matteson Capital 5 Value Added Newport Beach, CA 14 Preqin Ltd. / 5

6 alternative assets. intelligent data. How can Preqin s real estate data help you? Preqin s Real Estate Online is the leading source of intelligence on the real estate industry, and is constantly updated by Preqin s dedicated team of multilingual analysts. Source new investors with comprehensive profi les of over 4,6 institutions actively investing in real estate. Analyze fundraising activity over time by strategy, property type and location for more than 4,9 funds. Find active managers in real estate, with detailed profi les on over,3 fund managers from around the world. Identify which fund managers have the best track record with performance data for more than 1,5 individual named funds. Preqin s Real Estate Online is a vital tool for all professionals active in the real estate industry. For more information, or to arrange a demonstration, please visit:

7 Download the data pack: Preqin Special Report: West Coast US Real Estate West Coast-Based Investors The real estate investor universe based in the US West Coast is dominated by foundations, endowments, wealth managers and public and private pension funds, with these types of investors representing 71% of the 35 West Coast real estate investors profi led on Real Estate Online, as shown in Fig. 11. With smaller investors such as foundations and endowments making up such a large proportion of the West Coast investor universe, it is unsurprising that the largest proportion of West Coast-based investors, 43%, have assets under management (AUM) of less than $5mn, as shown in Fig. 1. However, with larger institutions such as public and private pension funds making up a combined 9% of investors on the West Coast, a considerable 15% of institutions possess $5bn or more in AUM, representing potentially large sources of capital for managers raising West Coast-focused funds. On average, West Coast-based investors are under-allocated to the real estate asset class. These investors maintain an average target allocation of 9% of total assets to real estate, and an average current allocation of 8%. Seventy-nine percent of investors hold target allocations between 5% and 14.9%, with a third targeting an allocation to real estate of between 1 and 14.9%. With just 19% of investors possessing an average current allocation between 1 and 14.9%, a signifi cant amount of capital is likely to fl ow into private real estate funds from West Coast-based investors as they look to fi ll their target allocations, demonstrating their confi dence in the asset class and their overall positivity regarding the current real estate market. With regards to geographical regions, West Coast-based real estate investors overwhelmingly favor North America-focused funds, with 98% of these institutions favoring investments in this region, and 3 and 39% of these investors targeting Asiaand Europe-focused investments respectively. A third of West Fig. 1: Breakdown of West Coast-Based Real Estate Investors by Assets under Management Fig. 11: Breakdown of West Coast-Based Real Estate Investors by Type 1% 9% 14% 8% 15% 7% 15% Foundation Private Sector Pension Fund Endowment Plan Wealth Manager Public Pension Fund Family Office Other Coast investors will target globally diversified real estate funds, indicating that these investors are particularly open as to which regions to invest in. Metropolitan areas on the West Coast are home to a large number of investors in private real estate funds. As shown in Fig. 14, cities in California account for eight of the top cities by number of West Coast-based investors, with San Francisco and Los Angeles topping the list, home to a combined 56 real estate investors. Seattle is the third most prominent city for real estate fund investors, with 4 real estate investors based in the city, representing the only Washington-based city out of the top, and Portland is the sole Oregon-based city in the top. The top fi ve West Coast-based investors by allocation to real estate are listed in Fig. 15; four of these are among the top 5 throughout the US. California Public Employees Retirement Fig. 13: Distribution of West Coast-Based Closed-End Real Estate Investors Current and Target Allocations to Real Estate 7% 15% 43% Less than $5mn $5-999mn $1-4.9bn $5bn or More Proportion of Investors 5 45% 4 35% 3 5% 15% 1 5% 6% 16% % 1 34% 46% 19% 33% 9% 5% Current Allocation Target Allocation 16% Less than 1% 1-.4%.5-4.9% 5-9.9% -14.9% 15% or More Allocation to Real Estate as a Proportion of AUM 14 Preqin Ltd. / 7

8 Preqin Special Report: West Coast US Real Estate Download the data pack: System (CalPERS) is the top real estate investor on the West Coast, with an allocation of approximately $5.9bn to real estate (8.6% of total assets). The public pension fund maintains a long-term target allocation of 11% to real estate, and will look to reach this by July 15, primarily through separate account structures. The next largest by real estate allocation is California State Teachers Retirement System (CalSTRS), a $184bn, Sacramento, California-based public pension fund that allocates more than $bn to real estate. The pension fund invests the majority of its allocation to the asset class via private real estate funds and will seek to split its portfolio equally between private equity real estate funds and open-ended core real estate funds. The only non-pension fund to make the top fi ve table is Stanford Management Company, a $6.9bn endowment plan which manages the fi nancial assets of Stanford University. The endowment maintains a real estate target allocation of 8%, and has a current allocation that is more than double its target, at 19.8% of its total assets. It targets private real estate funds investing on a global basis, favoring value added, opportunistic and debt strategies. Fig. 14: Top West Coast Cities by Number of Real Estate Investors West Coast City No. of Real Estate Investors San Francisco 31 Los Angeles 5 Seattle 4 San Diego 1 Portland 11 Oakland 9 Pasadena 8 Palo Alto 6 Santa Barbara 6 Sacramento 6 Fig. 15: Top Five West Coast-Based Investors by Allocation to Real Estate Investor Type Location Current Allocation to Real Estate ($bn) Assets under Management ($bn) California Public Employees' Retirement System (CalPERS) Public Pension Fund Sacramento, CA 6 3 California State Teachers' Retirement System (CalSTRS) Public Pension Fund Sacramento, CA 184 Washington State Investment Board Public Pension Fund Olympia, WA 9 74 Oregon State Treasury Public Pension Fund Salem, OR 8 7 Stanford Management Company Endowment Plan Stanford, CA 5 7 Fig. 16: Sample of West Coast-Based Investors Targeting Private Real Estate in the Next 1 Months Investor Location Assets under Management ($bn) Oregon State Treasury Salem, OR 7 San Diego City Employees Retirement System San Joaquin County Employees' Retirement Association Sacramento, CA 7 Stockton, CA Investment Plans for the Next 1 Months Oregon State Treasury will commit up to $1.1bn to private real estate funds in the next 1 months. The public pension fund will commit $6mn via two separate account structures targeting value added opportunities in the retail and apartment sectors. It will commit up to an additional $5mn across two private funds with a focus on mezzanine debt and niche property. San Diego City Employees Retirement System will target value added and opportunistic private real estate funds in the next 1 months. The pension fund will consider existing fund managers in its portfolio and fi rms it has yet to invest with. San Joaquin County Employees' Retirement Association will commit up to $4mn to private real estate funds in the next 1 months. The pension fund will target value added or core funds and seeks to form new GP relationships Preqin Ltd. /

9 Download the data pack: Preqin Special Report: West Coast US Real Estate West Coast Fund Managers The vast majority of managers based on the West Coast are fi rsttime managers, as shown in Fig. 17, with 69% of the 9 fi rms profi led on Preqin s Real Estate Online having raised only one fund or having one fund in market. In terms of strategies, these fi rms favor opportunistic and value added investments, with 66% and 8 utilizing each strategy respectively, demonstrating these managers appetite for risk (Fig. 18). Just 3% and 6% of these fi rms will invest in core and core-plus properties respectively. As a consequence of a move up the risk/return curve for both investors and managers in recent quarters, competition for value added and opportunistic assets appears to have increased considerably. When managers were asked as part of a recent Preqin fund manager survey whether there had been any change in competition for assets, 85% of West Coast-based managers stated that competition for value added/opportunistic assets had increased, compared to 58% stating so for core assets, as shown in Fig. 19. No managers believe that competition has decreased, suggesting that fi rms will fi nd it harder to source attractive investment opportunities across the risk spectrum. With 46% of West Coast-based managers planning to invest more capital in real estate assets in the next 1 months compared to the previous year (Fig. ), fi rms may fi nd the increased competition continues to push asset prices up, making it harder to fi nd value in the current market. Encouragingly, West Coast-based managers appear positive regarding institutional appetite for the real estate asset class, with the recent fund manager survey revealing that all West Coast-based fi rms surveyed believe that institutional appetite has increased or signifi cantly increased over the past year, with none stating that they had seen a decrease (Fig, 1). Fig. 17: Breakdown of West Coast-Based Private Real Estate Fund Managers by Experience 5% 6% First-Time Manager/One Fund In Market Although this is positive for managers raising West Coast-focused funds, the vast majority (77%) of fund managers also stated that competition for investor capital has increased or signifi cantly increased, as shown in Fig., with none stating they believe there has been a decrease in competition for capital. Investors are becoming increasingly discerning as to which managers they will place capital with, with manager experience and strong past performance often the key attributes that investors are looking for prior to making a fund commitment. As a result, capital is increasingly concentrated among fewer, more experienced managers, meaning that those managers without a strong track record may fi nd it challenging to attract capital in a fundraise. With a large proportion of West Coast-based managers having raised only one fund or are currently raising their fi rst vehicle, these fi rms will need to demonstrate to investors that they have 69% Second-/Third-Time Manager Fourth-/Fifth-Time Manager Sixth-Time Manager or More Fig. 18: Strategies Preferred by West Coast-Based Private Real Estate Fund Managers vs. All Other US-Based Managers Fig. 19: West Coast-Based Private Real Estate Fund Managers Views on the Level of Competition for Assets: Core vs. Value Added/Opportunistic Proportion of Fund Manager % 68% 6% 38% 31% 37% 6% 9% 3% % 19% West Coast- Based Managers All Other US- Based Managers Proportion of Respondents % 4% 85% More Competition No Change Less Competition Core Core-Plus Distressed Debt Opportunistic Value Added 1 15% Core Assets Value Added/ Opportunistic Assets Source: Preqin Real Estate Fund Manager Survey, October Preqin Ltd. / 9

10 Preqin Special Report: West Coast US Real Estate Download the data pack: the ability to source value in this competitive market, and will need a unique fund strategy in order to stand out from the crowd. Fig. : Amount of Capital West Coast-Based Private Real Estate Managers Plan to Deploy in Real Estate Assets in the Next 1 Months Compared with the Past 1 Months As demonstrated in Fig. 3, Irvine, California-based manager Western National Properties has raised the most capital for dedicated West Coast-focused private real estate funds since 8% 7, having raised $54mn for investment in the region. Encore Capital Management is second on the list, having raised $46mn through its fund Encore Housing Opportunity Fund II that closed in July % More Capital than in the Past 1 Months The Same Amount of Capital as in the Past 1 Months 46% Less Capital than in the Past 1 Months Source: Preqin Real Estate Fund Manager Survey, October 14 Fig. 1: West Coast-Based Private Real Estate Managers Views on How Institutional Investor Appetite for Private Real Estate Has Changed in the Last 1 Months Fig. : West Coast-Based Private Real Estate Managers Views on Whether There is More Competition for Investor Capital than 1 Months Ago 18% Significant Increase 3% 8% Significant Increase Increase Increase No Change No Change Decrease Decrease Significant Decrease Significant Decrease 8% 69% Source: Preqin Real Estate Fund Manager Survey, October 14 Source: Preqin Real Estate Fund Manager Survey, October 14 Fig. 3: Top West Coast Managers by Capital Raised for West Coast-Focused Private Real Estate Funds Since 7 Firm Total Value of West Coast- Focused Funds Since 7 ($mn)* Firm Headquarters Sample of Funds Closed/Raising Western National Properties 54 Irvine, CA Western National Realty Fund II, $4mn (Dec-8), Western National Realty Fund III, $3mn** Encore Capital Management 46 San Francisco, CA Encore Housing Opportunity Fund II, $46mn (Jul-13) Swift Real Estate Partners 33 San Francisco, CA Swift Real Estate Partners Fund I, $33mn (Mar-14) Menlo Equities 3 Palo Alto, WA Menlo Realty Partners V, $14mn (Jun-14), Menlo Realty Partners IV, $16mn (Nov-11) Unico Properties 65 Seattle, CA Unico Partners I, $65mn (Jul-14) Thorofare Capital 18 Los Angeles, CA Thorofare Asset Based Lending Fund II, $15mn (Jun-13), Thorofare Asset Based Lending Fund I, $3mn (Dec-11) Essex Property Trust 16 Palo Alto, CA WESCO IV, $16mn (Apr-14) Embarcadero Capital Partners 155 Belmont, CA Embarcadero Capital Investors IV, $155mn (Apr-14) Sares-Regis Group 114 Irvine, CA Sares Regis Multifamily Fund, $114.3mn (Mar-13) Morrison Street Capital 71 Portland, OR Morrison Street Fund IV, $7.7mn (Jun-1) *Includes target size of funds in market **Denotes target size of fund in market 14 Preqin Ltd. /

11 alternative assets. intelligent data. NEED ACCESS TO INFORMATION ON ALL ASPECTS OF THE SECONDARY MARKET? SECONDARY MARKET MONITOR CAN HELP IDENTIFY all the key players in the secondary market. FIND potential sellers of fund interests. SEARCH for secondary market buyers by their preferences. VIEW secondary transactions and all the latest secondaries news. UNDERSTAND investor attitudes and the latest trends in the secondary market. The Preqin SECONDARY MARKET MONITOR gives you the vital intelligence on all aspects of the secondary market, constantly updated by Preqin s team of dedicated analysts through direct contact with institutional investors and fund managers from around the world. Arrange a demonstration today and fi nd out how SECONDARY MARKET MONITOR can help you:

12 Preqin Special Report: West Coast US Real Estate November 14 Preqin: Global Data and Intelligence With global coverage and detailed information on all aspects of the real estate asset class, Preqin s industry-leading Real Estate Online service keeps you up-to-date on all the latest developments in the real estate universe. Find active fund managers in real estate Search for fi rms actively targeting real estate investments and how much dry powder they have available to put to work, with detailed profi les on over,3 fund managers from around the world, including background, key contacts and funds raised. Analyze the latest real estate fundraising activity See which fund managers are currently on the road raising a private equity real estate fund and which will be coming to market soon. Analyze fundraising over time by fund strategy, property type and location. Source new investors for funds and co-investments Find the most relevant investors, with access to detailed profi les for over 4,6 institutional investors actively investing in real estate, including insurance companies, pension funds, family offi ces, foundations, wealth managers, endowments, banks and more. Identify potential investment opportunities View in-depth profi les for over 4,9 unlisted real estate funds encompassing all strategies, including core, core-plus, value added, opportunistic, debt and distressed and fund of funds. Benchmark performance Identify which fund managers have the best track records, with performance benchmarks for real estate funds and performance details for over 1,5 individual named funds. Examine fund terms Use our unique Fund Terms Calculator to model fee changes and see the typical terms that a real estate fund charges. What are the implications of making changes to different fees? How do these fees vary between fund type and strategy? Find out how Preqin s range of real estate products and services can help you: If you want any further information, or would like to request a demo of our products, please contact us: New York: One Grand Central Place 6 E 4nd Street Suite 63 New York NY 165 Tel: Fax: London: 3rd Floor Vintners Place 68 Upper Thames Street London EC4V 3BJ Tel: +44 () 37 Fax: +44 () Singapore: One Finlayson Green #11- Singapore 4946 Tel: Fax: San Francisco: 17 Montgomery Street Suite 134 San Francisco CA Tel: Fax: info@preqin.com Web: