Real Estate Spotlight www.preqin.com June 2010 Volume 4 - Issue 6

Real Estate Spotlight is the monthly newsletter published by Preqin packed full of vital information and data, all based on our latest research into the real estate industry.

Preqin Real Estate Online is an online service providing constantly updated data and analysis, with information on fundraising, fund performance and profi les. For more information and to arrange a demo, please visit: www.preqin.com/realestate Real Estate Funds of Funds and Their Contribution to Market Recovery

What would you like to see in Real Estate Spotlight? Email us at: [email protected].

Feature Article Investor Spotlight page 3 page 9

Real Estate Funds of Funds and their Contribution to Market UK-Based Investors Recovery Each month Investor Spotlight examines a particular group of Fundraising for funds of funds has declined since the onset of the investors, using Preqin’s Real Estate Online database. This month we global economic downturn; however, they still play an important look at UK-based investors. role in the private real estate market as a whole.

Fundraising Spotlight Conferences Spotlight page 7 page11

We take a look at real estate fundraising in the past month. We look at the upcoming events in the real estate world.

Fund Manager Spotlight Investor News page 8 page 12

US-Based Fund Managers All the latest news on real estate investors: Each month Fund Manager Spotlight examines a particular group of fund managers, using Preqin’s Real Estate Online database. This Including... month we look at US-based fund managers. • San Joaquin Employees’ Retirement Association

• London Borough of Brent You can now download all the data in • CPP Investment Board this month’s Spotlight in Excel.

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© 2010 Preqin Ltd. / www.preqin.com INVESTORS • FUNDRAISING • FUND MANAGERS Other Free Publications: Private Equity Spotlight Infrastructure Spotlight Hedge Fund Spotlight

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Private Equity Spotlight www.preqin.com August 2009 / Volume 5 - Issue 8

Welcome to the latest edition of Private Equity Spotlight, the monthly newsletter from Preqin, providing insights into private equity performance, investors and fundraising. Private Equity Spotlight combines information from our online products Performance Analyst, Investor Intelligence, Fund Manager Profiles & Funds in Market. Private Equity Spotlight: Investor Survey Results Special

Feature Article page 3 Fundraising Spotlight page 13 Private Equity Spotlight is Preqin’s free monthly newsletter, Current Investor Attitudes to Private Equity This month’s Fundraising Spotlight takes an in-depth look at buyout, venture and fund of funds private equity fundraising. Over one week in July 2009 Preqin’s Investor Intelligence team conducted a survey of 100 of the most significant institutional investors in private equity. This month’s feature article takes keeping you updated with vital information on private equity fund a look at the results and what this means for the fundraising Conferences Spotlight market in the second half of 2009. page 18 We look at the upcoming events in the private equity world. performance, fundraising and LPs. Each month’s issue contains Performance Spotlight page 9

The Effect of Private Equity Performance on the Current Investor News page 21 Fundraising Environment a special feature article on topics of interest. All the latest news on secondaries and private equity investors; This month we look at how private equity performance has affected fundraising for new vehicles and why this years Including... total capital raised looks set to be significantly lower than in previous years. t Adams Street Partners

t ERA Foundation

Fund Manager Spotlight Korea Investment Corporation page 11 t To download recent issues and to register to receive Private New York Buyout Firms t Jade Invest

This month’s fund manager profile looks at New York buyout firms and examines the number, size and preferences of the Be the first to know about all our exclusive research Equity Spotlight, please visit: funds they raise. reports and projects, follow us on twitter: www.twitter.com/

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OUT NOW London: Scotia House, 33 Finsbury Square, London. EC2A 1BB www.preqin.com/spotlight +44 (0)20 7065 5100 The 2009 Preqin Fund Terms Advisor New York: 230 Park Avenue, 10th floor, New York, NY 10169 +1 212 808 3008 More information available at: www.preqin.com/fta www.preqin.com

PERFORMANCE • INVESTORS • FUNDRAISING • FUND MANAGERS © 2009 Preqin Ltd. / www.preqin.com

Infrastructure Spotlight September 2009 / Volume 2 - Issue 9 www.preqin.com

Welcome to Infrastructure Spotlight, the monthly newsletter from Preqin, providing insights into performance, investors and fundraising. Infrastructure Spotlight: Infrastructure Spotlight contains information from our online product, Infrastructure Online. Evolution of Fund of Funds

Feature Article Preqin Infrastructure Online Infrastructure Spotlight is Preqin’s free monthly newsletter, page 3 page 9 The Evolution of Funds of Funds in the Infrastructure Market Preqin Infrastructure Online is the industry’s leading online source of information on infrastructure, with data for: This month’s feature article looks at the growing number of infrastructure-specific fund of funds vehicles on the road. We t'VOESBJTJOH containing exclusive research and analysis from our industry- investigate the benefits of this type of fund and predict what the future holds in store. t'VOE1FSGPSNBODF leading publications and online databases. t*OWFTUPS1SPöMFT t1MVTNPSF Fundraising Spotlight page 7

This month’s Fundraising Spotlight looks at infrastructure We take an in-depth look at the product, and how it can help funds on the road and examines the details of DIF you. Includes information on ordering and registering for your Infrastructure II, the latest infrastructure fund to achieve an free trial. interim close.

Investor Spotlight Conferences Spotlight page 10 To download recent issues and to register to receive page 8 Details of infrastructure conferences taking place around the All the latest news on investors in infrastructure: Infrastructure Spotlight, please visit: globe. • California Public Employees’ Retirement System (CalPERS) shortlists infrastructure consultants... Be the first to know about all our exclusive research reports and projects, follow us on twitter: Ohio Public Employees’ Retirement System (OPERS) www.twitter.com/preqin • establishes infrastructure allocation... Employees’ Retirement System of Rhode Island to decide on • real return portfolio... www.preqin.com/spotlight If you would like to receive Infrastructure Spotlight each month please email [email protected]

London: Scotia House, 33 Finsbury Square, London. EC2A 1BB +44 (0)20 7065 5100 OUT NOW The 2009 Preqin Infrastructure Review The 2009 Preqin Private Equity New York: 230 Park Avenue, 10th floor, New York, NY 10169 Infrastructure Review +1 212 808 3008

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© 2008 Preqin Ltd. / www.preqin.com PERFORMANCE • INVESTORS • FUNDRAISING

Hedge Fund Investor Spotlight www.preqin.com

September 2009 / Volume 1 - Issue 9 Welcome to the September edition of Hedge Fund Investor Spotlight, the monthly newsletter from Preqin, providing insights into institutional investors in hedge funds. This month Hedge Fund Investor Spotlight contains information from our industry-leading online product: Hedge Fund Online. Hedge Funds in a Post-Crunch World Hedge Fund Spotlight:

Feature Article page 3 Investor News page 16

The Evolving Institutional Landscape in a Post-Crunch World This month’s Investor News section identifies some of the most important new developments in the institutional investor This month’s feature article looks at how the credit crunch universe. Full profiles for all institutions featured in Investor and economic turbulence of recent months has impacted on News can be viewed on our online service. institutional investors’ attitudes towards hedge funds. Featured this month: Hedge Fund Spotlight is Preqin’s free monthly newsletter, t San Diego County Employees’ Retirement Association

Investor in Focus t Novartis Pension Fund page 9 containing exclusive research and analysis from our industry- Oakley Captial Absolute Return Emerging Markets t

Each month Investor in Focus examines a particular group of investors, using data from Preqin’s Investor Profiles Online Conferences Spotlight leading publications and online databases. service. This month we examine emerging market investors. page 16

We look at the upcoming events in the hedge fund world.

Strategy in Focus page 11

Emerging Markets Each month Strategy in Focus examines a particular hedge To download recent issues and to register to receive Hedge fund strategy, using data from Preqin’s Investor Profiles Online service. This month we examine emerging markets. Be the first to know about all our exclusive research reports and projects, follow us on twitter - www.twitter.com/preqin Fund Spotlight, please visit:

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OUT NOW London: Scotia House, 33 Finsbury Square, London. EC2A 1BB The 2009 Preqin +44 (0)20 7065 5100 Review The 2009 Preqin www.preqin.com/spotlight Sovereign Wealth New York: 230 Park Avenue, 10th floor, New York, NY 10169 Fund Review +1 212 808 3008 www.preqin.com/swf www.preqin.com

© 2009 Preqin Ltd. / www.preqin.com 3 ◄ Feature Article June 2010

Real Estate Funds of Funds and Their Contribution to Market Recovery

Real estate funds of funds play an There was some consolidation in the fund These include AVP Advisors’ $400 important role in the private real estate of funds market during 2009. In November million American Value Partners Fund market as a whole, acting as key investors 2009, Aviva Investors Real Estate Multi- I, which targeted newer managers that for fund managers and allowing smaller Manager announced it had taken over the demonstrated a competitive advantage in institutions, which lack the capital or management of two real estate funds of a specifi ed property type or geographic resources to construct their own fund funds previously managed by BlackRock market. Hawkeye Partners also targets portfolios, to gain real estate exposure Realty and in July 2009, Capital Dynamics newer fi rms, although its investments are diversifi ed by strategy, geography and assumed the management of HRJ Capital’s typically structured as joint ventures rather property type. fund of funds business, including its private than fund commitments. equity real estate fund of funds platform. Fundraising for funds of funds has declined There is potential for further consolidation In contrast, some funds of funds aim to since the onset of the global economic as the larger players within the market look give smaller investors exposure to some of downturn. Funds of funds raised just $1.7 to cement their positions as market leaders. the largest fi rms in the industry. The larger billion in 2009, compared with $4.1 billion in minimum commitment size required would 2008 and $4.6 billion in 2007. This decline Diversity in the Fund of Funds Market normally stop many smaller institutions is in line with the whole private real estate from committing to these funds. Syndicated fund market, which saw a signifi cant fall in Funds of funds are key investors for Equities’ Syndicated Access Fund II the amount of capital raised in 2009. managers raising their fi rst vehicle, as has committed to funds managed by they will typically have the knowledge Blackstone Real Estate Advisors, Morgan The fi rst real estate funds of funds date and resources to carry out the extra Stanley Real Estate and RREEF Real back to the late 1990s, but it was not due diligence required on this type Estate. Granite Hall Partners’ SVP RE I until several years later that a signifi cant of investment. 73% of funds of funds has a similar approach and its underlying industry began to emerge. Preqin has surveyed do invest with fi rst-time fund investments included commitments to identifi ed 57 fi rms active in the fund of managers, while a further 17% would Walton Street Capital, Carlyle Group and funds market, managing a total of 119 consider doing so. There are several JP Morgan Asset Management. funds of funds. funds of funds designed solely to provide exposure to emerging managers. There have also been a number of funds of funds launched with a specifi c regional focus and most notably, a number of Fig. 1: funds of funds target Asian real estate funds. Aberdeen Property Investors raised $600 million for AIPP Asia in Real Estate Funds of Funds Fundraising, 2005 - May 2010 2007 and closed AIPP Asia Select in Q2 18 17 2009 with commitments of $221 million. 16 16 CBRE Investors Global Multi Manager’s CBRE Asia Alpha Plus Fund raised $250 14 13 No. of Funds million and invests in value added and 12 opportunistic funds across the Asia Pacifi c 10 10 region. Franklin Templeton Investments raised $383 million for its Franklin 8 Templeton Asian Real Estate Fund and 6 6 Aggregate began raising capital for Franklin Templeton 4.6 Capital 4.1 Asian Real Estate Fund 2 in the fi rst 4 3.1 3 Raised ($bn) 1.7 quarter of 2010. 2 0.5 0.4 0 As a result of the increased interest in 2005 2006 2007 2008 2009 Jan - May distressed real estate and real estate debt, 2010 Source: Preqin a number of funds of funds focused on this

© 2010 Preqin Ltd. / www.preqin.com You can now download all the data in this month’s Spotlight in Excel. 4 ◄ Feature Article June 2010

sector have been launched. Metropolitan Real Estate Equity Management raised Fig. 2: $162 million for Metropolitan Real Estate Partners 2008 Distressed Co-Investment and is marketing MREP Distressed Underlying Strategies Targeted by Real Estate Funds of Funds Strategies II. Investors Diversifi ed Realty is 100% marketing the Investors Diversifi ed Realty 90% 86% Fund, which will allocate its initial capital to Funds funds that are originating fi rst mortgages 80% of 72% Funds and mezzanine debt positions. 70% Closed 2008 - 60% 57% May In terms of structure, 82% of funds of 52% 2010 50% 48% funds are private closed vehicles. A further 15% are private open-ended funds. These 40% 30% Funds include Henderson Indirect Property Fund 30% 26% of Funds

(Europe), a €450 million fund that targets Proportion of Fund Funds 20% 14% 14% 13% in underlying European core-plus, value 10% Market 10% 7% added and opportunistic vehicles, and the €732 million ING Eurosiris Fund of Funds, 0% Opportunistic Value Added Distressed Debt Core-Plus Core which targets core and core-plus funds Source: Preqin across Europe. There are also a small number of listed funds of funds that target market. While opportunistic and value explains the 20 percentage point increase underlying private equity real estate funds. added funds remain commonly targeted in funds of funds investing in core-plus These account for 3% of all funds of funds. strategies, the proportion of funds targeting vehicles, as investors seek to reduce the these strategies has fallen. In contrast, level of risk in their portfolios and target Targeted Strategies the turbulent market conditions have led returns through income, rather than to an increase in the proportion of funds appreciation. Fig. 2 shows the underlying fund strategies of funds seeking to invest in distressed that are targeted by funds of funds that vehicles. 52% of funds of funds in market Fund of funds managers were largely closed in the period 2008 to May 2010, plan to make this type of commitment. inactive during the past 12 months. They and those that are currently in market. Furthermore, many fund of funds were either reluctant to commit before This shows that fund of funds managers managers now believe that the best market the market bottomed out or delayed new are altering their strategies in light of the opportunities are presenting themselves investments at the request of investors opportunities within the current real estate in core and core-plus investments. This keen to avoid additional capital calls. Many fi rms do have capital available to invest and most expect to be far more active in the Fig. 3: coming year.

Funds of Funds as Investment Breakdown of Real Estate Funds of Funds Investor Universe by Assets under Consultants Management

Fund of funds managers do not just manage the capital raised through funds of funds, many also act as investment consultants to a number of investors and allocate to funds through managed mandates and separate accounts. These fi rms are therefore responsible for an even greater proportion of the capital that is allocated to the private equity real estate asset class. Many manage segregated multi-manager mandates on behalf of institutional investors, creating a real estate fund portfolio based on the investor’s Source: Preqin

© 2010 Preqin Ltd. / www.preqin.com You can now download all the data in this month’s Spotlight in Excel. 5 ◄ Feature Article June 2010

geographic preferences and appetite for which is likely to have a greater degree of 2009, the lowest number since 2003. risk. Aviva Investors Real Estate Multi- expertise and contacts than most smaller Raising capital for new funds of funds Manager is one such fi rm. It has invested investors. during 2009 was an extremely challenging over $6 billion in private real estate funds prospect in a market in which most on behalf of its institutional clients. Investor Appetite investors were extremely cautious and reluctant to make new fund commitments. Who Invests in Funds of Funds? Market conditions have led to many As a result some fi rms were forced to investors halting their real estate abandon their funds, while those fi rms that Fund of funds investments are a popular investments, and the small to medium- did close funds often raised less capital option for small to medium-sized investors. sized institutions that invest in funds of than they had originally targeted. Fig. 3 shows that 76% of investors in funds funds have been affected by the decline of funds have a total asset base of less in property valuations. Many investors The fundraising market remains extremely than $10 billion. 41% have total assets of that had hoped to return to the market this competitive, as many investors remain between $1 billion and $9.9 billion, with year are postponing further, and many reluctant to make new commitments. 35% managing less than $1 billion in are as yet undecided as to when they will These institutions still see the value of assets. However, it is not exclusively the resume commitments. Most investors are funds of funds and are likely to return to smallest investors that commit to funds not abandoning the fund of funds route the market, but it may not be until 2011 that of funds. Larger investors may commit to however, and will continue to make this the rate of fundraising improves. There has these vehicles to gain exposure to a market type of commitment. been some consolidation within the fund they have little knowledge of or a region of funds market and this is a trend which that they might not be able to reach through Outlook seems likely to continue as the larger fi rms direct fund commitments. seek to further cement their position as The real estate fund of funds market has leaders within the industry. Diversifi cation is one of the key reasons grown into an important part of the private investors commit to funds of funds. One real estate fund industry as a whole. The Despite the slow fundraising environment, commitment provides the investor with a industry saw signifi cant growth between funds of funds do have capital available to fund portfolio diversifi ed by geography, 2005 and 2007, with funds of funds raising commit and while they may have spent the strategy and property type. This is achieved increased amounts of capital. 2009 was a past 12 months on the sidelines, most have at a fraction of the cost required if the diffi cult year for fundraising. The aggregate indicated to Preqin that they will look to investor were to invest in individual funds. capital raised fell to $1.7 billion, just 37% make new investments in the coming year. The due diligence and research is all of the capital raised in 2007. Seven funds These fi rms are experienced investors and carried out by the fund of funds manager, of funds made their fi rst investments in are adapting their approach in order to take advantage of the prevailing opportunities in the current market. Fund of funds Th e 11th Annual managers that invest wisely in the coming months could well secure strong returns for US Real Estate their investors. Opportunity & Private Andrew Moylan Fund Investing Forum *UNE  s.EW9ORK .9 HEAR FROM GPs, LPs & CONSULTANTS FROM THE FOLLOWING COMPANIES:

ANGELO GORDON & CO. LUBERT ADLER AREA PROPERTY PARTNERS MEADOW PARTNERS LLC BIRMINGHAM FIRE & POLICE SUPPLEMENTAL MESIROW FINANCIAL INSTITUTIONAL REAL ESTATE PENSION FUND METROPOLITAN REAL ESTATE EQUITY MANAGEMENT BLACKROCK MORGAN STANLEY REAL ESTATE BROOKFIELD ASSET MANAGEMENT NEW ORLEANS MUNICIPAL EMPLOYEES’ RETIREMENT SYSTEM The information contained within this CB RICHARD ELLIS INVESTORS PARK HILL REAL ESTATE GROUP CITIPROPERTY INVESTORS PHOENIX REALTY ADVISORS LLC article is based on data from The 2010 CLERESTORY CAPITAL PRAEDIUM GROUP, LLC COHEN & STEERS CAPITAL MANAGEMENT, INC. ROGERSCASEY Preqin Private Equity Real Estate Fund of FORTRESS INVESTMENT GROUP RREEF FRANKLIN TEMPLETON REAL ESTATE ADVISORS RUSSELL INVESTMENTS Funds Review GE ASSET MANAGEMENT INC. STARWOOD CAPITAL HAMMOND ASSOCIATES TEXAS PERMANENT SCHOOL FUND HONEYWELL LANDMARK PARTNERS THE TOWNSEND GROUP For more information, sample pages and LASALLE INVESTMENT MANAGEMENT UNITED NATIONS JOINT STAFF PENSION FUND details on how to order your copy, please LIBERTY MUTUAL GROUP WESTBROOK PARTNERS LIQUID REALTY PARTNERS And many more... visit:

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© 2010 Preqin Ltd. / www.preqin.com You can now download all the data in this month’s Spotlight in Excel. 2010 Preqin Private Equity Real Estate Fund of Funds Review: Order Form

Now in its third year, The 2010 Preqin PERE Fund of Funds Review is the most comprehensive guide to the private equity real estate fund of funds industry ever created. The 2010 Preqin Private Equity Preqin has contacted managers, investors and real estate professionals from around Real Estate Fund of Funds Review the world in order to ensure that this year’s publication is as accurate and detailed as possible. This year’s edition includes:

• Comprehensive profi les for all 57 PERE fund of funds managers, including contact details, history, sample investments, plus detailed investment plans at a fund-specifi c level. • Also includes profi les for nine private equity fund of funds managers with a signifi cant allocation to real estate. • Full listings for all funds closed and currently in the market. • Profi les for over 100 current institutional investors in PERE funds of funds, with Order before Friday 4th June for a contact details, sample investments made and investment plans for the future. 25% pre-publication discount • Detailed analysis on all aspects of the market, identifying trends in fundraising, fund terms and conditions, investors, fund focus and much more. www.preqin.com/refof ------------2010 Preqin PERE Fund of Funds Review Order Form - Please complete and return via fax, email or post I would like to purchase The 2010 Preqin PERE Fund of Funds Review £350 + £10 Shipping $595 + $40 Shipping €370 + €25 Shipping Prices include a 25% pre-publication discount

Additional Copies £110 + £5 Shipping $180 + $20 Shipping €115 + €12 Shipping (Shipping costs will not exceed a maximum of £15 / $60 / €37 per order when all shipped to same address. If shipped to multiple addresses then full postage rates apply for additional copies) I would like to purchase The 2010 PERE Fund of Funds Review Graphs & Charts Data Pack in MS Excel Format: (contains all underlying data for charts and graphs contained in the publication. Only available alongside $300 / £175 / €185 purchase of the publication).

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© 2010 Preqin Ltd. / www.preqin.com 7 ◄ Fundraising Spotlight June 2010

Fundraising Spotlight

Fig.Real 1: Estate Funds on the Road Fig. 2:

Funds on the Road Funds in Market by Fund Manager Headquarters North 250 Europe ROW Total 231 America No. of Funds 200 Number of Funds 215 106 76 397 Aggregate Target Size 150 77.8 41 30.6 149.5 ($bn) 109 100 87.1 Average Target Size 376 436 438 403 56 Aggregate ($mn) 50 42.4 Target ($bn) 20.1

0 North America Europe Asia and Rest of World Source: Preqin Fig. 3:

10 Largest Solely North America-Focused Real Estate Funds on the Road Fund Manager Target Size (mn) Strategy Carlyle Realty Partners VI Carlyle Group 3,000 USD Opportunistic, Debt TA Realty Associates IX TA Associates Realty 1,850 USD Core-Plus, Value Added, Debt, Distressed MacFarlane Urban Real Estate Fund III MacFarlane Partners 1,500 USD Opportunistic AREA Real Estate Opportunity Fund VI AREA Property Partners 1,000 USD Opportunistic, Debt Vornado Capital Partners Vornado Realty Trust 1,000 USD Distressed LNR Archetype Real Estate Debt Fund LNR Commercial Property 850 USD Debt Group CrossHarbor Institutional Partners II CrossHarbor Capital Partners 750 USD Opportunistic, Debt JP Morgan US Opportunistic Property Fund JP Morgan Asset 750 USD Opportunistic, Debt Management Och-Ziff Real Estate Fund II Och-Ziff Real Estate Advisors 750 USD Debt, Distressed Murray Hill Properties Real Estate Murray Hill Properties 750 USD Core, Value Added, Opportunistic, Investment V Distressed

Recently Closed Funds

Starwood Global Opportunity Fund VIII Starwood Capital Global Hospitality Fund II

Manager: Starwood Capital Group Manager: Starwood Capital Group Strategy: Opportunistic, Distressed Strategy: Opportunistic, Distressed Property Types: Any Property Types: Hospitality Geographic Focus: Global Geographic Focus: Global Target IRR (Net): 20% Target IRR (Net): 20% Final Close: 1,800 USD (April 2010) Final Close: 965 USD (April 2010) Sample Investors: CalPERS, CalSTRS, New Mexico Public Sample Investors: CalPERS, CalSTRS, Los Angeles Employees’ Retirement Association, North Carolina Department City Employees’ Retirement System, Los Angeles County of State Treasurer, Pennsylvania State Employees’ Retirement Employees’ Retirement Association, Maryland State Retirement System, State of Connecticut Retirement Plans and Trust and Pension System, Oregon State Treasury Funds, Teachers’ Retirement System of Louisiana

© 2010 Preqin Ltd. / www.preqin.com You can now download all the data in this month’s Spotlight in Excel. 8 ◄ Fund Manager Spotlight June 2010

Fund Manager Spotlight: US-Based Fund Managers

Fig. 1: Fig. 2:

Fundraising by US-Based Firms, 2000 - 2009 Funds on the Road Managed by US-Based Firms

180 250 225 160 154 142 135 No. of 200 140 130 Funds 120 150 97.9 100 89 92.4 76 80 69.8 100 79.6 57.3 Aggregate 60 53 41 Capital 38 38 33.9 Raised 40 28 50 18.9 ($bn) 20 14.6 11.7 11.3

0 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 No. of Funds Aggregate Target ($bn) Source: Preqin Source: Preqin

Fig. 3: Fig. 4:

Primary Geographic Focus of Funds on the Road Managed by Number and Aggregate Capital Raised by US-Based Firms by US-Based Firms State 250

199.3 No. of Firms 200 178

150 130 105 100 67.2 70.1 Aggregate 4248.5 47 50 30.4 3230.0 Capital 2522.1 Raised over Last 10 0 Years ($bn) Texas Illinois New York California Rest ofRest US Connecticut

Source: Preqin Massachusetts Source: Preqin

Andrew Herman The information in Fund Manager Spotlight is taken from Preqin’s Real Estate Online product. There are currently profi les for over 577 fund managers based in the US.

To fi nd out more information about this product, or to arrange a demo, please visit:

www.preqin.com/realestate

© 2010 Preqin Ltd. / www.preqin.com You can now download all the data in this month’s Spotlight in Excel. 9 ◄ Investor Spotlight June 2010

Investor Spotlight: UK-Based Investors

UK institutions are an important source of capital for real estate managers on both a domestic and international basis. In 2010 they account for 10% of all investors worldwide by number. Fig. 1 shows that a considerable proportion of such investors are pension funds: 38% nd are public pension funds and 21% are 2 Global Distressed Debt private pension plans. 8% are real estate fund of funds managers. Real estate fund Investing Summit managers that commit some of their own, or their client’s capital to third-party funds, June 16th, 2010 | New York account for 6% of UK investors. 15% are other types of institutional investors, such Network with Leading: as banks and investment companies. Distressed Fund Managers Private Equity Fund Managers UK-based institutions will invest across Hedge Fund Managers Lawyers the risk/return spectrum, although the M&A and Turnaround Advisors most targeted strategies are value added Investment Bankers and opportunistic. This is consistent with Bankruptcy Advisors Loan Originators the entire real estate investor universe. Debt Providers There is also a strong preference for low- Rating Agencies risk open-ended core funds, with 31% allocating to such vehicles. 30% seek fund of funds vehicles; these investors may not have the resources to diversify their portfolios through a series of direct Visit us at www.iglobalforum.com/distressed2 commitments.

96% of UK-based investors allocate to European funds, and 31% have a

Fig. 1: Fig. 2:

Breakdown of UK-Based Investors by Type Strategy Preferences of UK-Based Investors Proportion of Investors

Source: Preqin Source: Preqin

© 2010 Preqin Ltd. / www.preqin.com You can now download all the data in this month’s Spotlight in Excel. 10 ◄ Investor Spotlight June 2010

Fig. 3: The information in Investor Spotlight is taken from Real Estate Online. There Location Preferences of UK-Based Investors are currently profi les for 253 UK-based investors with an active interest in real 96% 100% estate. 90% 80% To fi nd out more about Real Estate Online please visit: 70% 60% www.preqin.com/reo 50% 38% 40% 31% 30% Proportion of Investors 20% 10% 0% North America Europe Asia and Rest of World Source: Preqin preference for funds focused on North America. The proportion of investors interested in Asia and Rest of World is slightly higher than the proportion interested in North America. This suggests that investors from the UK are keen to gain exposure to emerging markets. Forena Akthar

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© 2010 Preqin Ltd. / www.preqin.com You can now download all the data in this month’s Spotlight in Excel. 11 ◄ Conferences Spotlight June 2010

Conferences Spotlight: Forthcoming Events

Annual US Real Estate Opportunity & Private Fund Investing 2nd Global Distressed Debt Investing Summit 2010 Forum

Date: 16 June Date: June 3-4 Location: New York Location: Sheraton, New York, NY Organiser: iGlobal Forum Organiser: IMN iGlobal Forum 2nd Global Distressed Debt Investing IMN’s upcoming 11th Annual Real Estate Opportunity Summit will once again unite the leading Distressed Fund & Private Fund Investing Forum is scheduled for June Managers, Private Equity Fund Managers, Hedge Fund 3-4 at the Sheraton in New York. This is IMN’s fl agship Managers, M&A and Turnaround Advisors, Investment Real Estate event, annually attended by 1,200-1,500 Bankers, Bankruptcy Advisors, Loan Originators, delegates including a “Who’s Who” of Real Estate Debt Providers, and Rating Agencies. The event will General Partners, Limited Partners, and Industry Service provide the perfect platform to network with the leading Providers. dealmakers who will address the most pressing issues within the industry. Information: www.imn.org/usoppfunds2010 Information: www.terrapinn.com/2010/vis/

Conference DatesDates LocationLocation SponsorSponsor US Real Estate Opportunity & Private Fund Investing Forum 3 - 4 JuneJune 20102010 NewNew YorkYork IMNIMN Vietnam Investment Summit 2010 7 - 9 JuneJune 20102010 VietnamVietnam TerrapinnTerrapinn Adam SmithSmith Russian Real Estate Summit 7 - 9 JuneJune 20102010 MoscowMoscow ConferencesConferences Real Estate Investment World Asia 2010 21 - 2323 JuneJune 20102010 SingaporeSingapore TerrapinnTerrapinn New York Non-Traded REIT Industry Symposium 24 - 2525 JuneJune 20102010 NewNew YorkYork IMNIMN Real Estate Investment Latin America 2828 - 30 JuneJune 20102010 MiamiMiami IQPCIQPC Property Investment Conference 2010 29 - 30 JulyJuly 20102010 CapeCape TownTown IPD Asia BusinesBusiness Malaysia REITs 2010 2 - 5 August 2010 Kuala Lumpur Forum 3rd Distressed Commercial Real Estate EAST 13 - 15 September 2010 New York Infocast Opal Financial Real Asset Investing Forum 15 - 16 September 2010 San Francisco Group IPD RealWorld Conference 22 - 23 September 2010 Cambridge IPD The 2nd Annual Distressed Commercial Real Estate Forum 23 - 24 September 2010 New York IMN Expo Real 2010 4 - 6 October 2010 Munich Messe Munchen Real Estate Investment World Australia 2010 6 - 8 October 2010 Sydney Terrapinn Real Estate Investment World Japan 2010 25 - 27 October 2010 Tokyo Terrapinn European Real Estate Opportunity & Private Fund Investing Forum 8 - 9 November 2010 London IMN

© 2010 Preqin Ltd. / www.preqin.com You can now download all the data in this month’s Spotlight in Excel. 12 ◄ Investor Spotlight June 2010

Investor Spotlight: Investor News

Kuntien Eläkevakuutus looking to is not looking to increase this. It is also seek redemptions of USD 50 million continue investing in real estate in satisfi ed with the two funds of funds it is from Sentinel Real Estate Fund as it was 2010 invested in, and is not looking to allocate hoping to do. The EUR 26 billion pension fund has to further vehicles in the next two to three already invested in private real estate years. In order to reach its 8% target Government Pension Fund – Global in 2010, committing GBP 35 million to a allocation, London Borough of Brent appoints head of real estate fund making core-plus and value added Pension Fund will allocate an additional The NOK 2.8 trillion sovereign wealth investments in UK property. The pension GBP 9 million to its existing fund of funds fund has appointed Karsten Kallevig as fund has set aside approximately EUR investment, Aviva Investors UK Real head of its real estate team, a position 150 million to invest in three to fi ve Estate Fund of Funds. which he will take up on 1 September funds in 2010. Kuntien Eläkevakuutus 2010. He has been head of Grove will seek investments across the risk/ CPP Investment Board enters International Partner’s offi ce in Japan return spectrum, specifi cally targeting second joint venture agreement with since 2006 and prior to that worked in vehicles making core-plus and value Goodman their London offi ce. The sovereign wealth added investments. The pension fund The CAD 123.9 billion CPP Investment fund has a target allocation of 5% to real will continue to commit to funds making Board has formed another joint venture estate, which it hopes to reach in the next investments in Asian and European with Australian fi rm Goodman. The 5-10 years. markets, and could make its maiden two organizations have established commitment to a US-focused vehicle in a new investment vehicle, Goodman 2011. The pension fund may choose to Australia Development Fund (GADF) invest in real estate via a fund of funds to purchase development projects in vehicle in 2010, in order to maintain Australia, particularly in the logistics and diversifi cation in its portfolio. warehouse sectors. The vehicle will be Forena Akthar seeded with the purchase of a distribution San Joaquin County Employees’ centre in Melbourne that Goodman Retirement Association to allocate began developing for Kmart in January, USD 40 million to real estate at the cost of AUD 66.3 million. AUD 250 The USD 1.7 billion pension fund is million of initial equity will be committed looking to allocate USD 40 million to real to GADF, although the vehicle is targeting estate in the next 12 months. It is likely a gross asset value (GAV) of AUD 400 to make commitments to one to two real million. Goodman will be the asset estate funds, although its advisor ORG manager for GADF, which is 80% owned Portfolio Management could establish a by CPP Investment Board and 20% separate account for the pension fund owned by Goodman. to make purchases of real estate fund Each month Spotlight provides a stakes on the secondary market. ORG Illinois Municipal Retirement Fund to selection of the recent news on set up similar accounts for Arizona Public commit USD 250 million to real estate institutional investors in real estate. Safety Personnel Retirement System funds More news and updates are available and New Mexico Educational Retirement The USD 22.2 billion public pension online for Real Estate Online Board last year. San Joaquin County fund has announced that it plans to subscribers. Employees’ Retirement Association has a invest USD 250 million in real estate 10% target allocation to real estate, with funds during the course of the year. It In the last month, Preqin analysts 9.9% committed to the asset class; only is believed that USD 150 million will be have added 41 new investors 5% is actually invested. invested in core fund strategies, and USD and updated 227 existing investor 100 million in non-core strategies. This profi les. London Borough of Brent Pension follows an announcement in Q1 2010 that Fund will not be making new real the fund was seeking to allocate across For more information, or to register for a estate fund commitments in the next two or three vehicles. The pension fund demo, please visit: two to three years also plans to redeem USD 60 million from The GBP 450 million pension fund is Morgan Stanley Prime Property Fund www.preqin.com/reo satisfi ed with its 8% target allocation and and has announced that it will no longer

© 2010 Preqin Ltd. / www.preqin.com You can now download all the data in this month’s Spotlight in Excel.