Real estate sees rebounding public pension investments in Q2
Real estate was the sole private markets asset class tracked by Nasdaq eVestment’s Private Markets Monitor to see an increase in total reported commitments in Q2 2021 compared to Q1 2021, likely reflecting renewed confidence in the sector from public pension plans this year.
Public plans tracked by eVestment reported 109 commitments to private markets real estate investments totalling USD7.5 billion in 2Q, a 9.5 per cent increase from the previous quarter, according to the just-released June 2021 Private Markets Monitor. Average commitment size also increased to USD68 million from USD64 million.
These 2Q 2021 real estate commitments still represent a drop of 10.1 per cent compared to 2Q 2020, as some of the most severe months of the pandemic unfolded and the extent of the disruption in the current and future state of the real estate business was unknown. But the rebound in Q2 2021 reflects an overall strengthening of and confidence in real estate as an investment as normal work, shopping and entertainment activities resume.
The eVestment Private Markets Monitor is a monthly report highlighting top trends and commitment in private markets across private equity, private debt, real estate and real assets. The data in the report is sourced from eVestment’s Market Lens solution, which aggregates documents, videos, presentations and more from hundreds of public pension plans in the United States, Canada and the United Kingdom and from pensions’ investment consultants. The report offers a sample of public pensions’ appetites for various private market investment opportunities.